HMS Holdings's gross profit for the
three
months ended in Dec. 2020 was $75.8 Mil. HMS Holdings's gross profit for the trailing twelve months (TTM) ended in Dec. 2020 was $216.0 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. HMS Holdings's gross profit for the
three
months ended in Dec. 2020 was $75.8 Mil. HMS Holdings's Revenue for the
three
months ended in Dec. 2020 was $194.0 Mil. Therefore, HMS Holdings's Gross Margin % for the quarter that ended in Dec. 2020 was 39.10%.
HMS Holdings had a gross margin of 39.10% for the quarter that ended in Dec. 2020 => Competition eroding margins
HMS Holdings Gross Profit Historical Data
The historical data trend for HMS Holdings's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of HMS Holdings's Gross Profit
For the Health Information Services subindustry, HMS Holdings's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HMS Holdings's Gross Profit Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HMS Holdings's Gross Profit distribution charts can be found below:
* The bar in red indicates where HMS Holdings's Gross Profit falls into.
HMS Holdings Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
HMS Holdings's Gross Profit for the fiscal year that ended in Dec. 2020 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $216.0 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
HMS Holdings (NAS:HMSY) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
HMS Holdings had a gross margin of 39.10% for the quarter that ended in Dec. 2020 => Competition eroding margins
HMS Holdings Gross Profit Related Terms
Thank you for viewing the detailed overview of HMS Holdings's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
HMS Holdings Corp is a United States-based holding company that conducts businesses through its operating subsidiaries. The company offers services that help customers contain healthcare insurance benefit costs. Its primary offerings comprise coordination of benefits, payment integrity, and eligibility verification. The coordination of benefits service ensures the right party pays a health claim. The payment integrity service ensures the billing and/or payment is accurate and appropriate. The eligibility verification service ensures individuals meet qualifying criteria for healthcare programs. The company's customers include Medicaid agencies, government health agencies, health plans, government and private employers, and others. The company operates only within the United States.
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