Gross Margin % is calculated as gross profit divided by its revenue. NovoCure's Gross Profit for the
three
months ended in Sep. 2024 was $119.7 Mil. NovoCure's Revenue for the
three
months ended in Sep. 2024 was $155.1 Mil. Therefore, NovoCure's Gross Margin % for the quarter that ended in Sep. 2024 was 77.19%.
The historical rank and industry rank for NovoCure's Gross Margin % or its related term are showing as below:
NVCR'
s Gross Margin % Range Over the Past 10 Years
Min: 35.21 Med: 71.69 Max: 78.64
Current: 76.41
During the past 11 years, the highestGross Margin % of NovoCure was 78.64%. The lowest was 35.21%. And the median was 71.69%.
NVCR's Gross Margin % is ranked better than 86.71% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 51.89
vs NVCR: 76.41
NovoCure had a gross margin of 77.19% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NovoCure was 1.90% per year.
NovoCure Gross Margin % Historical Data
The historical data trend for NovoCure'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 NovoCure's Gross Margin %
For the Medical Devices subindustry, NovoCure'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.
NovoCure's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NovoCure'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.
NovoCure (NAS:NVCR) 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
NovoCure had a gross margin of 77.19% 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.
NovoCure Gross Margin % Related Terms
Thank you for viewing the detailed overview of NovoCure's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune Gio and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Trident, Lunar-2, Panova-3, Metis and other products and technologies for the treatment of Glioblastoma, Non-smell cell lung cancer and Pancreatic cancer. Geographically, the company derives majority of its revenue from the United States and rest from Germany, Japan and other markets.
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