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AVNS (Avanos Medical) Gross Margin % : 54.57% (As of Dec. 2024)


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What is Avanos Medical Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avanos Medical's Gross Profit for the three months ended in Dec. 2024 was $98.0 Mil. Avanos Medical's Revenue for the three months ended in Dec. 2024 was $179.6 Mil. Therefore, Avanos Medical's Gross Margin % for the quarter that ended in Dec. 2024 was 54.57%.


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

AVNS' s Gross Margin % Range Over the Past 10 Years
Min: 50.65   Med: 55.27   Max: 59.93
Current: 55.44


During the past 13 years, the highest Gross Margin % of Avanos Medical was 59.93%. The lowest was 50.65%. And the median was 55.27%.

AVNS's Gross Margin % is ranked better than
53.97% of 806 companies
in the Medical Devices & Instruments industry
Industry Median: 53.02 vs AVNS: 55.44

Avanos Medical had a gross margin of 54.57% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avanos Medical was 0.50% per year.


Avanos Medical Gross Margin % Historical Data

The historical data trend for Avanos Medical'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.

Avanos Medical Gross Margin % Chart

Avanos Medical Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.22 50.97 57.62 56.39 55.44

Avanos Medical Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 Premium Member Only 54.82 57.07 55.68 54.52 54.57

Competitive Comparison of Avanos Medical's Gross Margin %

For the Medical Devices subindustry, Avanos Medical'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.


Avanos Medical's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Avanos Medical's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Avanos Medical's Gross Margin % falls into.


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Avanos Medical Gross Margin % Calculation

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

Avanos Medical's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=381.3 / 687.8
=(Revenue - Cost of Goods Sold) / Revenue
=(687.8 - 306.5) / 687.8
=55.44 %

Avanos Medical's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=98 / 179.6
=(Revenue - Cost of Goods Sold) / Revenue
=(179.6 - 81.6) / 179.6
=54.57 %

* 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.


Avanos Medical  (NYSE:AVNS) 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

Avanos Medical had a gross margin of 54.57% 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.


Avanos Medical Gross Margin % Related Terms

Thank you for viewing the detailed overview of Avanos Medical's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Avanos Medical Business Description

Traded in Other Exchanges
Address
5405 Windward Parkway, Suite 100 South, Alpharetta, GA, USA, 30004
Avanos Medical Inc is a United States-based company that develops and sells medical devices and related services globally. Its operating and reportable segment provides medical device products to healthcare providers and patients. The company has now changed two franchises: has combined Chronic Care and Pain Management franchises into a single commercial organization focused on the Digestive Health and Pain Management and Recovery product categories that generate its revenue from its Chronic Care franchise and in North America.
Executives
Kerr Holbrook officer: SVP, GM Chronic Care 5405 WINDWARD PKWY, ALPHARETTA GA 30004
Michael Greiner officer: SVP - Chief Financial Officer C/O VISTAPRINT, 95 HAYDEN AVENUE, LEXINGTON MA 02421
Julie Ann Shimer director 18453 LAS CUMBRES ROAD, LOS GATOS CA 95033
Sudhakar Varshney officer: SVP, Global Supply Chain 5405 WINDWARD PARKWAY, SUITE 100 SOUTH, ALPHARETTA GA 30004
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
John Joseph Hurley officer: Principal Accounting Officer 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Patrick J Oleary director 31515 BALLANTYNE CORP, C/O SPX CORP, CHARLOTTE NC 28277
Mojirade James officer: SVP, General Counsel 5405 WINDWARD PKWY, ALPHARETTA GA 30004
William David Haydon officer: SVP, GM Pain Franchise 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
David Edward Ball officer: SVP - Global Supply Chain AVANOS MEDICAL, INC., 5405 WINDWARD PKWY, ALPHARETTA GA 30004
Arjun Ranjan Sarker officer: Senior VP, International HALYARD HEALTH, INC., 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Gary Blackford director 7700 FRANCE AVENUE SOUTH, EDINA MN 55435
Joseph Fralin Woody director, officer: Chief Executive Officer 5405 WINDWARD PARKWAY, SUITE 100 SOUTH, ALPHARETTA GA 30004
Steven E Voskuil officer: See Remarks 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
John W Wesley director 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004