Gross Margin % is calculated as gross profit divided by its revenue. Ardelyx's Gross Profit for the
three
months ended in Dec. 2024 was $97.9 Mil. Ardelyx's Revenue for the
three
months ended in Dec. 2024 was $116.1 Mil. Therefore, Ardelyx's Gross Margin % for the quarter that ended in Dec. 2024 was 84.27%.
Warning Sign:
Ardelyx Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Ardelyx's Gross Margin % or its related term are showing as below:
ARDX'
s Gross Margin % Range Over the Past 10 Years
Min: 80 Med: 87.17 Max: 98.08
Current: 84.85
During the past 13 years, the highestGross Margin % of Ardelyx was 98.08%. The lowest was 80.00%. And the median was 87.17%.
ARDX's Gross Margin % is ranked better than 80.3% of 741
companies
in the Biotechnology industry
Industry Median: 59.96
vs ARDX: 84.85
Ardelyx had a gross margin of 84.27% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ardelyx was -1.70% per year.
Ardelyx Gross Margin % Historical Data
The historical data trend for Ardelyx'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.
Competitive Comparison of Ardelyx's Gross Margin %
For the Biotechnology subindustry, Ardelyx'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.
Ardelyx's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ardelyx's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ardelyx's Gross Margin % falls into.
* 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.
Ardelyx (NAS:ARDX) 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
Ardelyx had a gross margin of 84.27% for the quarter that ended in Dec. 2024 => 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.
Ardelyx Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ardelyx's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ardelyx Inc is a biopharmaceutical company developing and commercialize, first-in-class medicines that meet unmet medical needs. It has developed a platform that enabled the discovery of new biological mechanisms and pathways to develop potent and efficacious therapies that minimize the side effects and drug-drug interactions frequently encountered with traditional, systemically absorbed medicines. It product Tenapanor, branded as IBSRELA, is used for the treatment of adults with IBS-C. Tenapanor, branded as XPHOZAH, is used to reduce serum phosphorus in adults with CKD on dialysis as add-on therapy in patients who have an inadequate response to phosphate binders or who are intolerant of any dose of phosphate binder therapy.
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