Acurity Health Group (NZSE:ACY) Gross Margin % : 79.16% (As of Mar. 2014)

Acurity Health Group Gross Margin % Chart

Acurity Health Group Annual Data
	Trend	Mar05	Mar06	Mar07	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13	Mar14
Gross Margin %		Get a 7-Day Free Trial					76.28	75.69	75.67	76.00	77.92

Acurity Health Group Semi-Annual Data
	Mar02	Mar03	Sep03	Mar04	Sep04	Mar05	Sep07	Mar08	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14
Gross Margin %	Get a 7-Day Free Trial															75.80	75.93	76.08	76.67	79.16

Competitive Comparison of Acurity Health Group's Gross Margin %

For the Medical Care Facilities subindustry, Acurity Health Group'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.

Acurity Health Group's Gross Margin % Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Acurity Health Group's Gross Margin % falls into.

Acurity Health Group Gross Margin % Calculation

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

Acurity Health Group's Gross Margin for the fiscal year that ended in Mar. 2014 is calculated as

Acurity Health Group's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

* 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.

Acurity Health Group  (NZSE:ACY) 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

Acurity Health Group had a gross margin of 79.16% for the quarter that ended in Mar. 2014 => 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.

Acurity Health Group Gross Margin % Related Terms

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Acurity Health Group (NZSE:ACY) Business Description