Gross Margin % is calculated as gross profit divided by its revenue. Hospira's Gross Profit for the
three
months ended in Jun. 2015 was €463 Mil. Hospira's Revenue for the
three
months ended in Jun. 2015 was €1,055 Mil. Therefore, Hospira's Gross Margin % for the quarter that ended in Jun. 2015 was 43.88%.
Warning Sign:
Hospira Inc gross margin has been in long term decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Hospira's Gross Margin % or its related term are showing as below:
FRA:HOS'
s Gross Margin % Range Over the Past 10 Years
Min: 26.99 Med: 34.7 Max: 40.12
Current: 40.12
During the past 13 years, the highestGross Margin % of Hospira was 40.12%. The lowest was 26.99%. And the median was 34.70%.
FRA:HOS's Gross Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 46.705
vs FRA:HOS: 40.12
Hospira had a gross margin of 43.88% for the quarter that ended in Jun. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hospira was -4.40% per year.
Hospira Gross Margin % Historical Data
The historical data trend for Hospira'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 Hospira's Gross Margin %
For the Drug Manufacturers - Specialty & Generic subindustry, Hospira'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.
Hospira's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hospira's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hospira'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.
Hospira (FRA:HOS) 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
Hospira had a gross margin of 43.88% for the quarter that ended in Jun. 2015 => 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.
Hospira Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hospira's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hospira Inc was incorporated in Delaware on September 16, 2003. The Company is a provider of injectable drugs and infusion technologies, and is also engaged in developing, manufacturing, marketing and distribution. Its portfolio includes generic acute-care and oncology injectables, biosimilars, and integrated infusion therapy and medication management products. Its portfolio of products is used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities. The Company's business segments are Specialty Injectable Pharmaceuticals, Medication Management and Other Pharmaceuticals. Specialty Injectable Pharmaceuticals consists of generic injectable pharmaceuticals products. Generic injectable pharmaceuticals provide customers with a lower-cost alternative to branded products when associated patent protection expires, when patents are declared invalid, or when the generic products do not infringe the patents of others. Our generic injectable pharmaceuticals are sold in therapeutic areas including analgesia, anesthesia, anti-infectives, cardiovascular, oncology, and other. Medication Management offer the Hospira MedNet safety software system, which is designed for hospitals to customize intravenous drug dosage limits and track drug delivery to prevent medication errors. The wireless network version of the Hospira MedNet system establishes real-time send-and-receive capability and can interface with select hospital and pharmacy information systems. Other Pharmaceuticals primarily consists of large volume I.V. solutions, nutritionals and contract manufacturing services. We offer infusion therapy solutions and related supplies that include I.V. solutions for general use, I.V. nutrition products, and solutions for washing and cleansing of wounds or surgical sites. The Company's primary customers include hospitals, wholesalers, integrated delivery networks and alternate site facilities. Its competitors include Baxter International Inc.; Becton, Dickinson and Company; Fresenius Kabi AG; Mallinckrodt plc; Mylan Inc; Par Pharmaceuticals Companies, Inc.; Pfizer Inc.; Sandoz; Sanofi S.A. and Teva Pharmaceuticals, Aspen Medical; Fresenius Kabi; Pfizer; Sandoz and a number of smaller competitors and the originator companies. The Company's operations and business activities are subject to extensive legal and regulatory requirements that are enforced by numerous governmental agencies in the countries in which it do business.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:HOS has been successfully added to your 