MSP Recovery (MSP Recovery) Gross Margin % : 72.12% (As of Mar. 2024)

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What is MSP Recovery Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MSP Recovery's Gross Profit for the three months ended in Mar. 2024 was $4.33 Mil. MSP Recovery's Revenue for the three months ended in Mar. 2024 was $6.00 Mil. Therefore, MSP Recovery's Gross Margin % for the quarter that ended in Mar. 2024 was 72.12%.

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

LIFWZ' s Gross Margin % Range Over the Past 10 Years
Min: 71.2 Med: 95.45 Max: 99.82
Current: 71.2

During the past 4 years, the highest Gross Margin % of MSP Recovery was 99.82%. The lowest was 71.20%. And the median was 95.45%.

LIFWZ's Gross Margin % is ranked better than
78.9% of 616 companies
in the Healthcare Providers & Services industry
Industry Median: 41.535 vs LIFWZ: 71.20

MSP Recovery had a gross margin of 72.12% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for MSP Recovery was 0.00% per year.

MSP Recovery Gross Margin % Historical Data

The historical data trend for MSP Recovery'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.

MSP Recovery Gross Margin % Chart

MSP Recovery Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Gross Margin %

99.66

99.82

91.23

72.16

MSP Recovery Quarterly Data
	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial								74.44	85.17	-30.45	76.24	72.12

Competitive Comparison of MSP Recovery's Gross Margin %

For the Health Information Services subindustry, MSP Recovery'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.

MSP Recovery's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, MSP Recovery's Gross Margin % distribution charts can be found below:

* The bar in red indicates where MSP Recovery's Gross Margin % falls into.

MSP Recovery Gross Margin % Calculation

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

MSP Recovery'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 )
	=	5.6	/	7.705
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7.705 - 2.145)	/	7.705
	=	72.16 %

MSP Recovery's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	4.3	/	6.001
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6.001 - 1.673)	/	6.001
	=	72.12 %

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.

MSP Recovery (NAS:LIFWZ) 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

MSP Recovery had a gross margin of 72.12% for the quarter that ended in Mar. 2024 => 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.

MSP Recovery Gross Margin % Related Terms

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MSP Recovery (MSP Recovery) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » MSP Recovery Inc (NAS:LIFWZ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LIFW:USA CN50:Germany

Address

2701 South Le Jeune Road, 10th Floor, Coral Gables, FL, USA, 33134

Website

https://www.msprecovery.com

MSP Recovery Inc is a healthcare recoveries and data analytics company. The business model includes two principal lines of business: Claims Recovery and Chase to Pay Services. It offers an antiquated healthcare reimbursement system with data-driven solutions to secure recoveries against responsible parties. MSP Recovery provides the healthcare industry with comprehensive compliance solutions platform to recover any claims where the law places primary payment responsibility on another payer.