iRhythm Technologies's gross profit for the
three
months ended in Dec. 2023 was $87.4 Mil. iRhythm Technologies's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $331.8 Mil.
iRhythm Technologies had a gross margin of 65.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 10 years, the highestGross Margin % of iRhythm Technologies was 75.54%. The lowest was 51.30%. And the median was 67.98%.
Warning Sign:
iRhythm Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
iRhythm Technologies Gross Profit Historical Data
The historical data trend for iRhythm Technologies's Gross Profit 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 iRhythm Technologies's Gross Profit
For the Medical Devices subindustry, iRhythm Technologies's Gross Profit, along with its competitors' market caps and Gross Profit 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.
iRhythm Technologies's Gross Profit Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, iRhythm Technologies's Gross Profit distribution charts can be found below:
* The bar in red indicates where iRhythm Technologies's Gross Profit falls into.
iRhythm Technologies Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
iRhythm Technologies's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $331.8 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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
iRhythm Technologies had a gross margin of 65.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage
iRhythm Technologies Gross Profit Related Terms
Thank you for viewing the detailed overview of iRhythm Technologies's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
iRhythm Technologies (iRhythm Technologies) Business Description
iRhythm Technologies Inc is a commercial-stage digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed by combining wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The company's portfolio include ambulatory cardiac monitoring services on a platform, called the Zio service, which combines an easy-to-wear and unobtrusive biosensor that can be worn for up to 14 consecutive days with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company derived its revenue from the United States.
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