Gross Margin % is calculated as gross profit divided by its revenue. AtriCure's Gross Profit for the
three
months ended in Dec. 2023 was $79.8 Mil. AtriCure's Revenue for the
three
months ended in Dec. 2023 was $106.5 Mil. Therefore, AtriCure's Gross Margin % for the quarter that ended in Dec. 2023 was 74.91%.
The historical rank and industry rank for AtriCure's Gross Margin % or its related term are showing as below:
ATRC'
s Gross Margin % Range Over the Past 10 Years
Min: 70.5 Med: 72.63 Max: 75.24
Current: 75.24
During the past 13 years, the highestGross Margin % of AtriCure was 75.24%. The lowest was 70.50%. And the median was 72.63%.
ATRC's Gross Margin % is ranked better than 84.8% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.575
vs ATRC: 75.24
AtriCure had a gross margin of 74.91% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AtriCure was 0.60% per year.
AtriCure Gross Margin % Historical Data
The historical data trend for AtriCure'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 AtriCure's Gross Margin %
For the Medical Instruments & Supplies subindustry, AtriCure'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.
AtriCure's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AtriCure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AtriCure'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.
AtriCure (NAS:ATRC) 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
AtriCure had a gross margin of 74.91% for the quarter that ended in Dec. 2023 => 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.
AtriCure Gross Margin % Related Terms
Thank you for viewing the detailed overview of AtriCure's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AtriCure Inc is an innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management, and post-operative pain management and sells its products to medical centers through its direct sales force and distributors. Its product line includes Cryo, Soft Tissue Dissection, RF Ablation Pacing and Sensing, and others. The company also offers a variety of minimally invasive ablation devices and access tools to facilitate the growing trend in less invasive cardiac and thoracic surgery. Geographically, it generates a majority of its revenue from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ATRC has been successfully added to your 