The historical rank and industry rank for AdaptHealth's Gross Margin % or its related term are showing as below:
AHCO'
s Gross Margin % Range Over the Past 10 Years
Min: 14.05 Med: 14.99 Max: 18.15
Current: 15.37
During the past 7 years, the highestGross Margin % of AdaptHealth was 18.15%. The lowest was 14.05%. And the median was 14.99%.
AHCO's Gross Margin % is ranked worse than 90.08% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.295
vs AHCO: 15.37
AdaptHealth had a gross margin of -13.73% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AdaptHealth was 0.00% per year.
AdaptHealth Gross Margin % Historical Data
The historical data trend for AdaptHealth'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 AdaptHealth's Gross Margin %
For the Medical Devices subindustry, AdaptHealth'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.
AdaptHealth's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AdaptHealth's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AdaptHealth'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.
AdaptHealth (NAS:AHCO) 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
AdaptHealth had a gross margin of -13.73% for the quarter that ended in Mar. 2024 => No sustainable 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.
AdaptHealth Gross Margin % Related Terms
Thank you for viewing the detailed overview of AdaptHealth's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AdaptHealth Corp is engaged in providing patient-centered, healthcare-at-home solutions including home medical equipment (HME), medical supplies, and related services. It focuses on providing; sleep therapy equipment, supplies, and related services (including CPAP and bi-PAP services) to individuals suffering from obstructive sleep apnea (OSA), medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors (CGM and insulin pumps), home medical equipment to patients discharged from acute care and other facilities, oxygen and related chronic therapy services in the home, and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs.
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