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Net Medical Xpress Solutions (Net Medical Xpress Solutions) Gross Margin % : 30.40% (As of Jun. 2018)


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What is Net Medical Xpress Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Net Medical Xpress Solutions's Gross Profit for the three months ended in Jun. 2018 was $0.17 Mil. Net Medical Xpress Solutions's Revenue for the three months ended in Jun. 2018 was $0.55 Mil. Therefore, Net Medical Xpress Solutions's Gross Margin % for the quarter that ended in Jun. 2018 was 30.40%.


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


NMXS's Gross Margin % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 41.535
* Ranked among companies with meaningful Gross Margin % only.

Net Medical Xpress Solutions had a gross margin of 30.40% for the quarter that ended in Jun. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Net Medical Xpress Solutions was 0.00% per year.


Net Medical Xpress Solutions Gross Margin % Historical Data

The historical data trend for Net Medical Xpress Solutions'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.

Net Medical Xpress Solutions Gross Margin % Chart

Net Medical Xpress Solutions Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.64 24.13 17.85 27.64 25.32

Net Medical Xpress Solutions Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Mar18 Jun18
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 25.85 25.98 24.84 18.83 30.40

Competitive Comparison of Net Medical Xpress Solutions's Gross Margin %

For the Health Information Services subindustry, Net Medical Xpress Solutions'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.


Net Medical Xpress Solutions's Gross Margin % Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Net Medical Xpress Solutions's Gross Margin % falls into.



Net Medical Xpress Solutions Gross Margin % Calculation

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

Net Medical Xpress Solutions'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 )
=0.8 / 3.045
=(Revenue - Cost of Goods Sold) / Revenue
=(3.045 - 2.274) / 3.045
=25.32 %

Net Medical Xpress Solutions's Gross Margin for the quarter that ended in Jun. 2018 is calculated as


Gross Margin % (Q: Jun. 2018 )=Gross Profit (Q: Jun. 2018 ) / Revenue (Q: Jun. 2018 )
=0.2 / 0.546
=(Revenue - Cost of Goods Sold) / Revenue
=(0.546 - 0.38) / 0.546
=30.40 %

* 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.


Net Medical Xpress Solutions  (OTCPK:NMXS) 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

Net Medical Xpress Solutions had a gross margin of 30.40% for the quarter that ended in Jun. 2018 => 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.


Net Medical Xpress Solutions Gross Margin % Related Terms

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Net Medical Xpress Solutions (Net Medical Xpress Solutions) Business Description

Traded in Other Exchanges
N/A
Address
8206 Louisiana Boulevard NE, Suite A, Albuquerque, NM, USA, 87113
Net Medical Xpress Solutions Inc is engaged in providing solutions to the telemedicine industry which deliver medical laboratory services. It offers proprietary software that links electronic medical records while enabling state-of-the-art conferencing and communications. The company also offers call centers, proprietary hardware implementations, diagnostic and clinical services, and software research and development capabilities.