M3 (MTHRF) Gross Margin % : 56.39% (As of Mar. 2024)

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What is M3 Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. M3's Gross Profit for the three months ended in Mar. 2024 was $225 Mil. M3's Revenue for the three months ended in Mar. 2024 was $398 Mil. Therefore, M3's Gross Margin % for the quarter that ended in Mar. 2024 was 56.39%.

The historical rank and industry rank for M3's Gross Margin % or its related term are showing as below:

MTHRF' s Gross Margin % Range Over the Past 10 Years
Min: 55.65 Med: 58.7 Max: 61.11
Current: 58.83

During the past 13 years, the highest Gross Margin % of M3 was 61.11%. The lowest was 55.65%. And the median was 58.70%.

MTHRF's Gross Margin % is ranked better than
68.65% of 606 companies
in the Healthcare Providers & Services industry
Industry Median: 41.465 vs MTHRF: 58.83

M3 had a gross margin of 56.39% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for M3 was 0.90% per year.

M3 Gross Margin % Historical Data

The historical data trend for M3'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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M3 Gross Margin % Chart

M3 Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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55.65

61.11

59.22

58.57

58.83

M3 Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															57.90	60.35	58.55	60.01	56.39

Competitive Comparison of M3's Gross Margin %

For the Health Information Services subindustry, M3'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.

M3's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, M3's Gross Margin % distribution charts can be found below:

* The bar in red indicates where M3's Gross Margin % falls into.

M3 Gross Margin % Calculation

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

M3's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )	=	Gross Profit (A: Mar. 2024 )	/	Revenue (A: Mar. 2024 )
	=	938	/	1594.482
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1594.482 - 656.474)	/	1594.482
	=	58.83 %

M3'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 )
	=	224.7	/	398.442
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(398.442 - 173.75)	/	398.442
	=	56.39 %

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.

M3 (OTCPK:MTHRF) 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

M3 had a gross margin of 56.39% 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.

M3 Gross Margin % Related Terms

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M3 (MTHRF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » M3 Inc (OTCPK:MTHRF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MTHRY:USA 2413:Japan 4YC:Germany

Address

Akasaka Intercity 10th floor, 1-11-44 Akasaka, Minato-ku, Tokyo, JPN, 105-0012

Website

http://corporate.m3.com

M3, Inc. is a Japan-based company engaged in providing medical-related services through the use of the Internet. It also supports marketing of pharmaceutical companies and medical equipment manufacturers. The company's business segment includes, Medical Portal segment, Evidence Solution segment, Overseas segment, Clinical Platform segment, Sales Platform segment, and Others. The company generates the majority of its revenue from Medical Portal segment.