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American Oncology Network (American Oncology Network) Gross Margin % : 2.58% (As of Mar. 2024)


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What is American Oncology Network Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. American Oncology Network's Gross Profit for the three months ended in Mar. 2024 was $9.39 Mil. American Oncology Network's Revenue for the three months ended in Mar. 2024 was $364.34 Mil. Therefore, American Oncology Network's Gross Margin % for the quarter that ended in Mar. 2024 was 2.58%.


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

AONCW' s Gross Margin % Range Over the Past 10 Years
Min: 4.24   Med: 8.28   Max: 9.12
Current: 4.24

During the past 4 years, the highest Gross Margin % of American Oncology Network was 9.12%. The lowest was 4.24%. And the median was 8.28%.

AONCW's Gross Margin % is ranked worse than
96.9% of 613 companies
in the Healthcare Providers & Services industry
Industry Median: 41.53 vs AONCW: 4.24

American Oncology Network had a gross margin of 2.58% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for American Oncology Network was 0.00% per year.

American Oncology Network Gross Margin % Historical Data

The historical data trend for American Oncology Network'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.

American Oncology Network Gross Margin % Chart

American Oncology Network Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Gross Margin %
9.12 8.26 8.30 6.47

American Oncology Network Quarterly Data
Dec20 Dec21 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial 8.93 8.30 7.56 2.66 2.58

Competitive Comparison of American Oncology Network's Gross Margin %

For the Medical Care Facilities subindustry, American Oncology Network'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.

American Oncology Network's Gross Margin % Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where American Oncology Network's Gross Margin % falls into.


American Oncology Network Gross Margin % Calculation

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

American Oncology Network's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=82.8 / 1279.185
=(Revenue - Cost of Goods Sold) / Revenue
=(1279.185 - 1196.389) / 1279.185
=6.47 %

American Oncology Network's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=9.4 / 364.339
=(Revenue - Cost of Goods Sold) / Revenue
=(364.339 - 354.948) / 364.339
=2.58 %

* 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.

American Oncology Network  (OTCPK:AONCW) 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

American Oncology Network had a gross margin of 2.58% for the quarter that ended in Mar. 2024 => No sustainable 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.

American Oncology Network Gross Margin % Related Terms

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American Oncology Network (American Oncology Network) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » American Oncology Network Inc (OTCPK:AONCW) » Definitions » Gross Margin %
Comparable Companies
PIII TOI BTMD AVAH CYH JYNT PNTG SNDA AIRS CCM HCA SAU:4013 SZSE:300015 HKSE:06618 XTER:FRE BKK:BDMS XKLS:5225 BSP:RDOR3 XTER:FME UHS
Traded in Other Exchanges
AONC:USA
Address
10485 NE 6th Street, Unit 3930, Bellevue, WA, USA, 98004
Website
https://www.aoncology.com
American Oncology Network Inc Formerly American Oncology Network LLC is an alliance of physicians and seasoned healthcare leaders who provide comprehensive oncology services through 24 oncology practices located in Arkansas, Louisiana, Indiana, Virginia, Ohio, Nevada, Iowa, Missouri, Washington, North Carolina, Michigan, Maryland, South Carolina, Arizona, and Georgia. The Company also provides expertise in drug procurement and payor contracting, along with practice diversification through centralized laboratory and pathology services, as well as specialty pharmacy services.