Hemagen Diagnostics (Hemagen Diagnostics) Gross Margin % : 45.89% (As of Sep. 2012)

Hemagen Diagnostics Gross Margin % Chart

Hemagen Diagnostics Annual Data
	Trend	Sep03	Sep04	Sep05	Sep06	Sep07	Sep08	Sep09	Sep10	Sep11	Sep12
Gross Margin %		Get a 7-Day Free Trial					43.48	38.24	45.13	38.14	39.91

Hemagen Diagnostics Quarterly Data
	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
Gross Margin %	Get a 7-Day Free Trial															40.84	36.77	31.59	47.78	45.89

Competitive Comparison of Hemagen Diagnostics's Gross Margin %

For the Biotechnology subindustry, Hemagen Diagnostics'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.

Hemagen Diagnostics's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Hemagen Diagnostics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hemagen Diagnostics's Gross Margin % falls into.

Hemagen Diagnostics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hemagen Diagnostics's Gross Margin for the fiscal year that ended in Sep. 2012 is calculated as

Hemagen Diagnostics's Gross Margin for the quarter that ended in Sep. 2012 is calculated as

* 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.

Hemagen Diagnostics  (OTCPK:HMGN) 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

Hemagen Diagnostics had a gross margin of 45.89% for the quarter that ended in Sep. 2012 => 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.

Hemagen Diagnostics Gross Margin % Related Terms

Thank you for viewing the detailed overview of Hemagen Diagnostics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Hemagen Diagnostics (Hemagen Diagnostics) Business Description