The historical rank and industry rank for Varex Imaging's Gross Margin % or its related term are showing as below:
VREX'
s Gross Margin % Range Over the Past 10 Years
Min: 25.76 Med: 32.94 Max: 40.06
Current: 32.69
During the past 12 years, the highestGross Margin % of Varex Imaging was 40.06%. The lowest was 25.76%. And the median was 32.94%.
VREX's Gross Margin % is ranked worse than 76.92% of 806
companies
in the Medical Devices & Instruments industry
Industry Median: 53.02
vs VREX: 32.69
Varex Imaging had a gross margin of 34.28% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Varex Imaging was 1.50% per year.
Varex Imaging Gross Margin % Historical Data
The historical data trend for Varex Imaging'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 Varex Imaging's Gross Margin %
For the Medical Devices subindustry, Varex Imaging'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.
Varex Imaging's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Varex Imaging's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Varex Imaging'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
Varex Imaging had a gross margin of 34.28% for the quarter that ended in Dec. 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.
Varex Imaging Gross Margin % Related Terms
Thank you for viewing the detailed overview of Varex Imaging's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Varex Imaging Corp designs and manufactures X-ray imaging components. It operates in two segments Medical and Industrial. The Medical segment, which is the key revenue driver, designs, manufactures, sells, and services X-ray imaging components, including X-ray tubes, digital detectors and accessories, generators, and heat exchangers among other products. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high-voltage connectors, and coolers. Geographically, the company generates maximum revenue from Europe, Middle East, and Africa (EMEA) and the rest from the Americas and Asia Pacific region.
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