Gross Margin % is calculated as gross profit divided by its revenue. Theragenics's Gross Profit for the
three
months ended in Jun. 2013 was €5.89 Mil. Theragenics's Revenue for the
three
months ended in Jun. 2013 was €15.39 Mil. Therefore, Theragenics's Gross Margin % for the quarter that ended in Jun. 2013 was 38.27%.
The historical rank and industry rank for Theragenics's Gross Margin % or its related term are showing as below:
FRA:THX's Gross Margin % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 52.61 * Ranked among companies with meaningful Gross Margin % only.
Theragenics had a gross margin of 38.27% for the quarter that ended in Jun. 2013 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Theragenics was 0.00% per year.
Theragenics Gross Margin % Historical Data
The historical data trend for Theragenics'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 Theragenics's Gross Margin %
For the Medical Devices subindustry, Theragenics'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.
Theragenics's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Theragenics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Theragenics'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.
Theragenics (FRA:THX) 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
Theragenics had a gross margin of 38.27% for the quarter that ended in Jun. 2013 => Competition eroding margins
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.
Theragenics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Theragenics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Theragenics Corporation is a Delaware Corporation formed in 1981. It is a medical device company serving the surgical products and cancer treatment markets, operate in two business segments; the surgical products segment and the brachytherapy seed segment. The Company's surgical products business manufactures markets and sells disposable devices utilized in certain surgical procedures. Its brachytherapy seed business manufactures markets and sells radioactive 'seeds' utilized in the treatment of early stage prostate cancer. Its surgical products business was built through the acquisitions of CP Medical Corp. in May 2005, Galt Medical Corporation in August 2006, and NeedleTech Products, Inc. in July 2008. The Company manufactures almost 3,500 products in this business as part of three broad product platforms; wound closure, vascular access and specialty needles. It serves a number of markets and applications, including, among other areas, interventional cardiology, interventional radiology, vascular surgery, orthopedics, plastic surgery, dental surgery, urology, veterinary medicine, pain management, endoscopy, and spinal surgery. With the exception of veterinary sutures, its surgical products hold relatively small market shares. Its products include both finished goods and components. The Company's products are sold mainly to original equipment manufacturers and to a network of distributors. The Company's facilities and operations are subject to extensive environmental, nuclear, regulatory and occupational health and safety laws at the federal, state and local levels. It is also subject to similar foreign laws and regulations under certain circumstances when its products are distributed outside of the United States.
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