Gross Margin % is calculated as gross profit divided by its revenue. Paragon 28's Gross Profit for the
three
months ended in Dec. 2024 was $52.3 Mil. Paragon 28's Revenue for the
three
months ended in Dec. 2024 was $71.7 Mil. Therefore, Paragon 28's Gross Margin % for the quarter that ended in Dec. 2024 was 72.92%.
Warning Sign:
Paragon 28 Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Paragon 28's Gross Margin % or its related term are showing as below:
FNA'
s Gross Margin % Range Over the Past 10 Years
Min: 74.75 Med: 79.19 Max: 82.29
Current: 74.75
During the past 6 years, the highestGross Margin % of Paragon 28 was 82.29%. The lowest was 74.75%. And the median was 79.19%.
FNA's Gross Margin % is ranked better than 84.12% of 806
companies
in the Medical Devices & Instruments industry
Industry Median: 53.02
vs FNA: 74.75
Paragon 28 had a gross margin of 72.92% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Paragon 28 was -1.50% per year.
Paragon 28 Gross Margin % Historical Data
The historical data trend for Paragon 28'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 Paragon 28's Gross Margin %
For the Medical Devices subindustry, Paragon 28'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.
Paragon 28's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Paragon 28's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paragon 28'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.
Paragon 28 (NYSE:FNA) 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
Paragon 28 had a gross margin of 72.92% 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.
Paragon 28 Gross Margin % Related Terms
Thank you for viewing the detailed overview of Paragon 28's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paragon 28 Inc is a medical devices company that develops, distributes, and sells medical devices in the foot and ankle segment of the orthopedic implant marketplace. Its products include plates and plating systems, screws, staples, and nails aimed to address all major foot and ankle procedures including ankle, Charcot, fracture fixation, hallux valgus, hammertoe, and flat foot. The company's suite of surgical solutions comprises nearly 80 product systems to help fit the specific needs of each patient and procedure. Geographically the company generates the majority of revenue from the United States.
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