Avanos Medical (Avanos Medical) Gross Margin % : 54.82% (As of Dec. 2023)

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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. 2023 was $95.0 Mil. Avanos Medical's Revenue for the three months ended in Dec. 2023 was $173.3 Mil. Therefore, Avanos Medical's Gross Margin % for the quarter that ended in Dec. 2023 was 54.82%.

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: 32.81 Med: 53.79 Max: 59.93
Current: 55.66

During the past 13 years, the highest Gross Margin % of Avanos Medical was 59.93%. The lowest was 32.81%. And the median was 53.79%.

AVNS's Gross Margin % is ranked better than
53.39% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.335 vs AVNS: 55.66

Avanos Medical had a gross margin of 54.82% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avanos Medical was -0.90% 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

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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57.65

52.22

50.97

57.62

56.39

Avanos Medical Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															56.66	54.51	57.73	55.75	54.82

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.

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. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	379.7	/	673.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(673.3 - 293.6)	/	673.3
	=	56.39 %

Avanos Medical's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	95	/	173.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(173.3 - 78.3)	/	173.3
	=	54.82 %

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 54.82% 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.

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 (Avanos Medical) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Avanos Medical Inc (NYSE:AVNS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

8HH:Germany

Address

5405 Windward Parkway, Suite 100 South, Alpharetta, GA, USA, 30004

Website

https://www.avanos.com

Avanos Medical Inc is a United States-based company that develops and sells medical devices and related services globally. The firm operates in one segment, medical devices, which primarily sells products related to pain management, IV Therapy, and respiratory and digestive health. The company divides its Medical Devices segment into two franchises: Pain Management and Chronic Care. Pain Management provides non-opioid products for acute and interventional pain, including cold and compression therapy. Chronic Care aims at addressing digestive and respiratory issues with feeding tubes and catheters. Avanos generates most of its revenue from its Chronic Care franchise and in North America.

Executives

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
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
David Edward Ball	officer: SVP - Global Supply Chain	AVANOS MEDICAL, INC., 5405 WINDWARD PKWY, ALPHARETTA GA 30004
William David Haydon	officer: SVP, GM Pain Franchise	5405 WINDWARD PARKWAY, 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
John Raymond Tushar	officer: President, Global Franchises	HALYARD HEALTH, INC., 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004