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Alternate Health (Alternate Health) Gross Margin % : 72.20% (As of Sep. 2019)


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What is Alternate Health Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alternate Health's Gross Profit for the three months ended in Sep. 2019 was $1.69 Mil. Alternate Health's Revenue for the three months ended in Sep. 2019 was $2.35 Mil. Therefore, Alternate Health's Gross Margin % for the quarter that ended in Sep. 2019 was 72.20%.


The historical rank and industry rank for Alternate Health's Gross Margin % or its related term are showing as below:


AHGIF's Gross Margin % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 41.53
* Ranked among companies with meaningful Gross Margin % only.

Alternate Health had a gross margin of 72.20% for the quarter that ended in Sep. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alternate Health was 0.00% per year.


Alternate Health Gross Margin % Historical Data

The historical data trend for Alternate Health's Gross Margin % 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.

* Premium members only.

Alternate Health Gross Margin % Chart

Alternate Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18
Gross Margin %
- - - - -

Alternate Health Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 68.27 72.20

Competitive Comparison of Alternate Health's Gross Margin %

For the Health Information Services subindustry, Alternate Health's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.


Alternate Health's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Alternate Health's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alternate Health's Gross Margin % falls into.



Alternate Health Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Alternate Health's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )=Gross Profit (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=0.4 / 0.429
=(Revenue - Cost of Goods Sold) / Revenue
=(0.429 - 0) / 0.429
=N/A %

Alternate Health's Gross Margin for the quarter that ended in Sep. 2019 is calculated as


Gross Margin % (Q: Sep. 2019 )=Gross Profit (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=1.7 / 2.345
=(Revenue - Cost of Goods Sold) / Revenue
=(2.345 - 0.652) / 2.345
=72.20 %

* 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.


Alternate Health  (OTCPK:AHGIF) Gross Margin % 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

Alternate Health had a gross margin of 72.20% for the quarter that ended in Sep. 2019 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Alternate Health Gross Margin % Related Terms

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Alternate Health (Alternate Health) Business Description

Traded in Other Exchanges
N/A
Address
7373 Broadway Street, Suite 307, San Antonio, TX, USA, 78209
Alternate Health Corp is a healthcare company. It uses expertise in technology and data analytics to revolutionize patient care and research in the emerging medical cannabis industry. It offers practice management and controlled substance management software, blood analysis and toxicology labs, clinical research, continuing education programs, nutraceutical products, and security and control services to the medical cannabis industry.