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iRhythm Technologies (iRhythm Technologies) Gross Margin % : 65.98% (As of Dec. 2023)


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What is iRhythm Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. iRhythm Technologies's Gross Profit for the three months ended in Dec. 2023 was $87.4 Mil. iRhythm Technologies's Revenue for the three months ended in Dec. 2023 was $132.5 Mil. Therefore, iRhythm Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 65.98%.

Warning Sign:

iRhythm Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


The historical rank and industry rank for iRhythm Technologies's Gross Margin % or its related term are showing as below:

IRTC' s Gross Margin % Range Over the Past 10 Years
Min: 51.3   Med: 67.98   Max: 75.54
Current: 67.35


During the past 10 years, the highest Gross Margin % of iRhythm Technologies was 75.54%. The lowest was 51.30%. And the median was 67.98%.

IRTC's Gross Margin % is ranked better than
73.87% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.575 vs IRTC: 67.35

iRhythm Technologies had a gross margin of 65.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for iRhythm Technologies was -2.40% per year.


iRhythm Technologies Gross Margin % Historical Data

The historical data trend for iRhythm Technologies'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.

* Premium members only.

iRhythm Technologies Gross Margin % Chart

iRhythm Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 75.54 73.50 66.16 68.54 67.35

iRhythm Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.89 67.91 69.46 66.19 65.98

Competitive Comparison of iRhythm Technologies's Gross Margin %

For the Medical Devices subindustry, iRhythm Technologies'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.


iRhythm Technologies's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, iRhythm Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where iRhythm Technologies's Gross Margin % falls into.



iRhythm Technologies Gross Margin % Calculation

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

iRhythm Technologies's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=331.8 / 492.681
=(Revenue - Cost of Goods Sold) / Revenue
=(492.681 - 160.875) / 492.681
=67.35 %

iRhythm Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=87.4 / 132.511
=(Revenue - Cost of Goods Sold) / Revenue
=(132.511 - 45.085) / 132.511
=65.98 %

* 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.


iRhythm Technologies  (NAS:IRTC) 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

iRhythm Technologies had a gross margin of 65.98% for the quarter that ended in Dec. 2023 => 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.


iRhythm Technologies Gross Margin % Related Terms

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


iRhythm Technologies (iRhythm Technologies) Business Description

Traded in Other Exchanges
Address
699 8th Street, Suite 600, San Francisco, CA, USA, 94103
iRhythm Technologies Inc is a commercial-stage digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed by combining wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The company's portfolio include ambulatory cardiac monitoring services on a platform, called the Zio service, which combines an easy-to-wear and unobtrusive biosensor that can be worn for up to 14 consecutive days with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company derived its revenue from the United States.
Executives
Daniel G. Wilson officer: EVP, Strategy Corp Dev Inv Rel 699 8TH STREET, SUITE 600, SAN FRANCISCO CA 94103
Patrick Michael Murphy officer: CLO & EVP RA/QA MrktAcs & Gov 6340 SEQUENCE DRIVE, SAN DIEGO CA 92121
Mervin Smith officer: EVP Strategic Business Ops C/O IRHYTHM TECHNOLOGIES, INC., 699 8TH ST #600, SAN FRANCISCO CA 94103
Marc W. Rosenbaum officer: Chief Accounting Officer 7475 LUSK BLVD., SAN DIEGO CA 92121
Brice Bobzien officer: Chief Financial Officer C/O IRHYTHM TECHNOLOGIES, INC., 699 8TH ST #600, SAN FRANCISCO CA 94103
Chad Patterson officer: Chief Commercial Officer 6340 SEQUENCE DRIVE, SAN DIEGO CA 92121
Minang Turakhia officer: EVP, CMO & CSO C/O IRHYTHM TECHNOLOGIES, INC., 699 8TH ST #600, SAN FRANCISCO CA 94103
Quentin S. Blackford director, officer: President and CEO 7475 LUSK BLVD., SAN DIEGO CA 92121
Mojdeh Poul director 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Brian B Yoor director 100 ABBOTT PARK ROAD, AP6A-2, D-032L, ABBOTT PARK IL 60064
Mark J. Day officer: EVP, Research & Development C/O IRHYTHM TECHNOLOGIES, INC., 650 TOWNSEND STREET, SUITE 500, SAN FRANCISCO CA 94103
Douglas Devine officer: Chief Financial Officer C/O IRHYTHM TECHNOLOGIES, INC., 699 8TH STREET, SUITE 600, SAN FRANCISCO CA 94103
Bairey Merz Cathleen Noel director 16664 CUMBRE VERDE COURT, PACIFIC PALISADES CA 90272
Reyna M Fernandez officer: EVP, Chief HR Officer C/O INTERSECT ENT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025
Sumi Shrishrimal officer: EVP, Chief Risk Officer 6340 SEQUENCE DRIVE, SAN DIEGO CA 92121

iRhythm Technologies (iRhythm Technologies) Headlines

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