MSGP (MedSmart Group) Gross Margin %: 48.11% (As of Sep. 2014)

MedSmart Group  (OTCPK:MSGP) 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

MedSmart Group had a gross margin of 48.11% for the quarter that ended in Sep. 2014 => 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.

MedSmart Group Gross Margin % Related Terms

The historical data trend for MedSmart Group'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.

MedSmart Group Gross Margin % Chart

MedSmart Group Annual Data
	Trend	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
Gross Margin %		Get a 7-Day Free Trial					80.00	0.00	44.44	43.75	49.45

MedSmart Group Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Gross Margin %	Get a 7-Day Free Trial															44.06	53.78	53.61	54.03	48.11

MSGP vs BCYP, MBIOF, LOGX: Gross Margin % Comparison

For the Medical Care Facilities subindustry, MedSmart Group'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.

MedSmart Group Gross Margin % vs Healthcare Providers & Services Industry

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

* The bar in red indicates where MedSmart Group's Gross Margin % falls into.

MedSmart Group Gross Margin % Calculation

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

MedSmart Group's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

MedSmart Group's Gross Margin for the quarter that ended in Sep. 2014 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.

MedSmart Group Business Description