InnovAge Holding Corp gross margin has been in long-term decline. The average rate of decline per year is -9.5%.
The historical rank and industry rank for InnovAge Holding's Gross Margin % or its related term are showing as below:
INNV'
s Gross Margin % Range Over the Past 10 Years
Min: 14.72 Med: 21.57 Max: 27.29
Current: 17.64
During the past 6 years, the highestGross Margin % of InnovAge Holding was 27.29%. The lowest was 14.72%. And the median was 21.57%.
INNV's Gross Margin % is ranked worse than 86.29% of 620
companies
in the Healthcare Providers & Services industry
Industry Median: 40.985
vs INNV: 17.64
InnovAge Holding had a gross margin of 16.84% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for InnovAge Holding was -9.50% per year.
InnovAge Holding Gross Margin % Historical Data
The historical data trend for InnovAge Holding'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 InnovAge Holding's Gross Margin %
For the Medical Care Facilities subindustry, InnovAge Holding'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.
InnovAge Holding's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, InnovAge Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where InnovAge Holding'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
InnovAge Holding had a gross margin of 16.84% for the quarter that ended in Sep. 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.
InnovAge Holding Gross Margin % Related Terms
Thank you for viewing the detailed overview of InnovAge Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
InnovAge Holding Corp is a healthcare delivery platform by several participants focused on providing all-inclusive, capitated care to high-cost, dual-eligible seniors. Its patient-centered care delivery approach improves the quality of care while keeping them in their homes and reducing over-utilization of high-cost care settings such as hospitals and nursing homes. The company's segment includes PACE and others. It generates maximum revenue from the PACE segment.
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