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ICU Medical (NAS:ICUI) Gross Margin %

: 35.01% (As of Jun. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. ICU Medical's Gross Profit for the three months ended in Jun. 2023 was $192 Mil. ICU Medical's Revenue for the three months ended in Jun. 2023 was $549 Mil. Therefore, ICU Medical's Gross Margin % for the quarter that ended in Jun. 2023 was 35.01%.

Warning Sign:

ICU Medical Inc gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


The historical rank and industry rank for ICU Medical's Gross Margin % or its related term are showing as below:

ICUI' s Gross Margin % Range Over the Past 10 Years
Min: 30.6   Med: 39.03   Max: 53.09
Current: 32.51


During the past 13 years, the highest Gross Margin % of ICU Medical was 53.09%. The lowest was 30.60%. And the median was 39.03%.

ICUI's Gross Margin % is ranked worse than
76.33% of 824 companies
in the Medical Devices & Instruments industry
Industry Median: 51.84 vs ICUI: 32.51

ICU Medical had a gross margin of 35.01% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ICU Medical was -1.90% per year.


ICU Medical Gross Margin % Historical Data

The historical data trend for ICU Medical'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.

* Premium members only.

ICU Medical Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.72 37.27 36.31 37.34 30.60

ICU Medical Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 29.87 31.18 30.27 33.77 35.01

Competitive Comparison

For the Medical Instruments & Supplies subindustry, ICU Medical'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.

   

ICU Medical Gross Margin % Distribution

For the Medical Devices & Instruments industry and Healthcare sector, ICU Medical's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ICU Medical's Gross Margin % falls in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.



ICU Medical Gross Margin % Calculation

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

ICU Medical's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=697.8 / 2279.997
=(Revenue - Cost of Goods Sold) / Revenue
=(2279.997 - 1582.236) / 2279.997
=30.60 %

ICU Medical's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=192.3 / 549.31
=(Revenue - Cost of Goods Sold) / Revenue
=(549.31 - 356.983) / 549.31
=35.01 %

* 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.


ICU Medical  (NAS:ICUI) 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

ICU Medical had a gross margin of 35.01% for the quarter that ended in Jun. 2023 => 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.


ICU Medical Gross Margin % Related Terms

Thank you for viewing the detailed overview of ICU Medical's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


ICU Medical (NAS:ICUI) Business Description

ICU Medical logo
Traded in Other Exchanges
N/A
Address
951 Calle Amanecer, San Clemente, CA, USA, 92673
ICU Medical is a California-based, pure-play infusion therapy company that provides consumables, systems, and services for virtually every component of the IV continuum of care. ICU has become one of the largest players in its industry following its acquisition of Hospira Infusion Systems from Pfizer in 2017, and Smiths Medical from Smiths Group in 2022. It holds top-tier positions in its original reporting segments: infusion consumables (25% of 2022 revenue), IV solutions (16%), infusion systems (15%), and critical care (2%) as well as its new Smiths segments: Smiths infusion systems (15%), vascular access (14%), and vital care (12%). The combined entity remains primarily U.S. focused, generating over 64% of its sales domestically.
Executives
William Seeger director 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Smiths Group International Holdings Ltd 10 percent owner C/O SMITHS GROUP PLC, 11-12 ST. JAMES'S SQUARE, 4TH FLOOR, LONDON X0 SW1Y 4LB
Group Plc Smiths 10 percent owner 765 FINCHKEY ROAD, LONDON X0 00000
Kolleen T Kennedy director VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Laurie Hernandez director 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Brian Michael Bonnell officer: Chief Financial Officer ICU MEDICAL INC., 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Virginia Ruth Sanzone officer: VP, General Counsel 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Daniel Woolson officer: VP, GM-Infusion Capital ICU MEDICAL, INC., 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Christian B. Voigtlander officer: Chief Operating Officer 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Donald Abbey director 3750 TORREY VIEW COURT, SAN DIEGO CA 92130
David F Hoffmeister director C/O STEPSTONE GROUP INC., 450 LEXINGTON AVENUE, 31ST FLOOR, NEW YORK NY 10017
Douglas E. Giordano director C/O PFIZER INC., 235 EAST 42ND STREET, NEW YORK NY 10017
Pfizer Inc director, 10 percent owner 66 HUDSON BOULEVARD EAST, NEW YORK NY 10001-2192
Pfizer Manufacturing Llc 10 percent owner 235 EAST 42ND STREET, NEW YORK NY 10017
Pfizer Production Llc 10 percent owner 235 EAST 42ND STREET, NEW YORK NY 10017