Gross Margin % is calculated as gross profit divided by its revenue. Natera's Gross Profit for the
three
months ended in Sep. 2024 was $272 Mil. Natera's Revenue for the
three
months ended in Sep. 2024 was $440 Mil. Therefore, Natera's Gross Margin % for the quarter that ended in Sep. 2024 was 61.79%.
The historical rank and industry rank for Natera's Gross Margin % or its related term are showing as below:
NTRA'
s Gross Margin % Range Over the Past 10 Years
Min: 33.41 Med: 43.17 Max: 57.66
Current: 57.66
During the past 11 years, the highestGross Margin % of Natera was 57.66%. The lowest was 33.41%. And the median was 43.17%.
NTRA's Gross Margin % is ranked better than 62.38% of 202
companies
in the Medical Diagnostics & Research industry
Industry Median: 47.865
vs NTRA: 57.66
Natera had a gross margin of 61.79% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Natera was 4.20% per year.
Natera Gross Margin % Historical Data
The historical data trend for Natera'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.
For the Diagnostics & Research subindustry, Natera'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.
Natera's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Natera's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Natera'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.
Natera (NAS:NTRA) 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
Natera had a gross margin of 61.79% for the quarter that ended in Sep. 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.
Natera Gross Margin % Related Terms
Thank you for viewing the detailed overview of Natera's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Natera Inc is a diagnostic and research company with proprietary molecular and bioinformatics technology. The company's key product offerings include its Panorama Non-Invasive Prenatal Test (NIPT) which screens for chromosomal abnormalities of a fetus as well as in twin pregnancies, typically with a blood draw from the mother, Horizon Carrier Screening (HCS) to determine carrier status for a large number of severe genetic diseases that could be passed on to the carrier's children, Signatera molecular residual disease (MRD) test, which detects circulating tumor DNA in patients previously diagnosed with cancer to assess molecular residual disease and monitor for recurrence; and Prospera, to assess organ transplant rejection.
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