Avid Bioservices Inc gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Avid Bioservices's Gross Margin % or its related term are showing as below:
CDMO'
s Gross Margin % Range Over the Past 10 Years
Min: -5.45 Med: 25.83 Max: 48.22
Current: 7.68
During the past 13 years, the highestGross Margin % of Avid Bioservices was 48.22%. The lowest was -5.45%. And the median was 25.83%.
CDMO's Gross Margin % is ranked worse than 89.88% of 741
companies
in the Biotechnology industry
Industry Median: 60.15
vs CDMO: 7.68
Avid Bioservices had a gross margin of -6.11% for the quarter that ended in Oct. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Avid Bioservices was -3.50% per year.
Avid Bioservices Gross Margin % Historical Data
The historical data trend for Avid Bioservices'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 Avid Bioservices's Gross Margin %
For the Biotechnology subindustry, Avid Bioservices'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.
Avid Bioservices's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Avid Bioservices's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avid Bioservices'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.
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
Avid Bioservices had a gross margin of -6.11% for the quarter that ended in Oct. 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.
Avid Bioservices Gross Margin % Related Terms
Thank you for viewing the detailed overview of Avid Bioservices's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Avid Bioservices Inc is a clinical-stage biopharmaceutical company focused on the development and Current Good Manufacturing Practices (CGMP) of biopharmaceutical products derived from mammalian cell culture. Its business is organized into one reportable operating segment which is contract manufacturing and development services segment. Its services include clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. The company also provides a variety of process development services including cell line development, upstream and downstream development and optimization, analytical method development, testing and characterization.
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