The historical rank and industry rank for Quest Laboratories's Gross Margin % or its related term are showing as below:
NSE:QUESTLAB's Gross Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 47.425 * Ranked among companies with meaningful Gross Margin % only.
Quest Laboratories had a gross margin of 33.82% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Quest Laboratories was 0.00% per year.
Quest Laboratories Gross Margin % Historical Data
The historical data trend for Quest Laboratories'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.
Competitive Comparison of Quest Laboratories's Gross Margin %
For the Drug Manufacturers - General subindustry, Quest Laboratories'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.
Quest Laboratories's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Quest Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Quest Laboratories's Gross Margin % falls into.
* 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.
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
Quest Laboratories had a gross margin of 33.82% for the quarter that ended in Mar. 2024 => 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.
Quest Laboratories Gross Margin % Related Terms
Thank you for viewing the detailed overview of Quest Laboratories's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Quest Laboratories Ltd is engaged in the business of manufacturing pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. It produces various products, comprising ethical drugs, generic drugs, and over-the-counter drugs, and is also available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids.
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