Sphere Medical Holding (LSE:SPHR) Gross Margin % : 29.17% (As of Dec. 2016)

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What is Sphere Medical Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sphere Medical Holding's Gross Profit for the six months ended in Dec. 2016 was £0.01 Mil. Sphere Medical Holding's Revenue for the six months ended in Dec. 2016 was £0.02 Mil. Therefore, Sphere Medical Holding's Gross Margin % for the quarter that ended in Dec. 2016 was 29.17%.

Warning Sign:

Sphere Medical Holding PLC gross margin has been in long term decline. The average rate of decline per year is -2.7%.

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

LSE:SPHR' s Gross Margin % Range Over the Past 10 Years
Min: 33.33 Med: 62.5 Max: 86.67
Current: 33.33

During the past 9 years, the highest Gross Margin % of Sphere Medical Holding was 86.67%. The lowest was 33.33%. And the median was 62.50%.

LSE:SPHR's Gross Margin % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 52.83 vs LSE:SPHR: 33.33

Sphere Medical Holding had a gross margin of 29.17% for the quarter that ended in Dec. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sphere Medical Holding was -2.70% per year.

Sphere Medical Holding Gross Margin % Historical Data

The historical data trend for Sphere Medical 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.

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Sphere Medical Holding Gross Margin % Chart

Sphere Medical Holding Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Gross Margin %

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41.30

60.00

71.43

86.67

33.33

Sphere Medical Holding Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Gross Margin %	Get a 7-Day Free Trial						33.33	-	60.00	50.00	29.17

Competitive Comparison of Sphere Medical Holding's Gross Margin %

For the Medical Devices subindustry, Sphere Medical 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.

Sphere Medical Holding's Gross Margin % Distribution in the Medical Devices & Instruments Industry

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

* The bar in red indicates where Sphere Medical Holding's Gross Margin % falls into.

Sphere Medical Holding Gross Margin % Calculation

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

Sphere Medical Holding's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )	=	Gross Profit (A: Dec. 2016 )	/	Revenue (A: Dec. 2016 )
	=	0	/	0.03
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.03 - 0.02)	/	0.03
	=	33.33 %

Sphere Medical Holding's Gross Margin for the quarter that ended in Dec. 2016 is calculated as

Gross Margin % (Q: Dec. 2016 )	=	Gross Profit (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	0	/	0.024
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.024 - 0.017)	/	0.024
	=	29.17 %

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.

Sphere Medical Holding (LSE:SPHR) 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

Sphere Medical Holding had a gross margin of 29.17% for the quarter that ended in Dec. 2016 => 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.

Sphere Medical Holding Gross Margin % Related Terms

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Sphere Medical Holding (LSE:SPHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sphere Medical Holding PLC (LSE:SPHR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Harston Mill, Harston, Cambridge, GBR, CB22 7GG

Website

http://www.spheremedical.com

Sphere Medical Holding Ltd is a UK-based company which is engaged in research and development, manufacturing and sale of medical monitoring and diagnostic equipment within the medical device area. It focuses on developing the Proxima platform for measuring blood gases, electrolytes and metabolites. Proxima is an in-line patient dedicated arterial blood analyser which supports frequent measurements at critical times. It markets its product (Proxima) to critical care market which includes ICU (Intensive Care Unit) and OR (Operating Room). The company's products are used in medical applications, enabling faster clinical decision-making and improved patient outcomes. It operates is business in single reporting segment of Medical devices. Most of the company's revenue comes from Europe.