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HCA Healthcare Gross Margin %

: 36.88% (As of Jun. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. HCA Healthcare's Gross Profit for the three months ended in Jun. 2019 was $4,647 Mil. HCA Healthcare's Revenue for the three months ended in Jun. 2019 was $12,602 Mil. Therefore, HCA Healthcare's Gross Margin % for the quarter that ended in Jun. 2019 was 36.88%.


NYSE:HCA' s Gross Margin % Range Over the Past 10 Years
Min: 36.76   Max: 83.8
Current: 37.77

36.76
83.8

During the past 13 years, the highest Gross Margin % of HCA Healthcare was 83.80%. The lowest was 36.76%. And the median was 37.59%.

NYSE:HCA's Gross Margin % is ranked lower than
52% of the 247 Companies
in the Health Care Providers industry.

( Industry Median: 39.89 vs. NYSE:HCA: 37.77 )

HCA Healthcare had a gross margin of 36.88% for the quarter that ended in Jun. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for HCA Healthcare was 0.20% per year.


HCA Healthcare Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

HCA Healthcare Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.96 37.62 37.74 37.23 37.55

HCA Healthcare Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.63 36.54 39.00 38.58 36.88

Competitive Comparison
* 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.


HCA Healthcare Gross Margin % Distribution

* The bar in red indicates where HCA Healthcare's Gross Margin % falls into.



HCA Healthcare Gross Margin % Calculation

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

HCA Healthcare's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )=Gross Profit (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=17528 / 46677
=(Revenue - Cost of Goods Sold) / Revenue
=(46677 - 29149) / 46677
=37.55 %

HCA Healthcare's Gross Margin for the quarter that ended in Jun. 2019 is calculated as


Gross Margin % (Q: Jun. 2019 )=Gross Profit (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=-7955 / 12602
=(Revenue - Cost of Goods Sold) / Revenue
=(12602 - 7955) / 12602
=36.88 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


HCA Healthcare  (NYSE:HCA) 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

HCA Healthcare had a gross margin of 36.88% for the quarter that ended in Jun. 2019 => 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.


HCA Healthcare Gross Margin % Related Terms


HCA Healthcare Gross Margin % Headlines

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