Gross Margin % is calculated as gross profit divided by its revenue. Accuray's Gross Profit for the
three
months ended in Dec. 2023 was $35.9 Mil. Accuray's Revenue for the
three
months ended in Dec. 2023 was $107.2 Mil. Therefore, Accuray's Gross Margin % for the quarter that ended in Dec. 2023 was 33.48%.
Warning Sign:
Accuray Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Accuray's Gross Margin % or its related term are showing as below:
ARAY'
s Gross Margin % Range Over the Past 10 Years
Min: 33.92 Med: 38.75 Max: 40.25
Current: 33.92
During the past 13 years, the highestGross Margin % of Accuray was 40.25%. The lowest was 33.92%. And the median was 38.75%.
ARAY's Gross Margin % is ranked worse than 74.87% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs ARAY: 33.92
Accuray had a gross margin of 33.48% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Accuray was -2.40% per year.
Accuray Gross Margin % Historical Data
The historical data trend for Accuray'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 Accuray's Gross Margin %
For the Medical Devices subindustry, Accuray'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.
Accuray's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Accuray's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Accuray'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.
Accuray (NAS:ARAY) 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
Accuray had a gross margin of 33.48% for the quarter that ended in Dec. 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.
Accuray Gross Margin % Related Terms
Thank you for viewing the detailed overview of Accuray's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Accuray Inc is a radiation oncology company that develops, manufactures, sells and supports precise, innovative treatment solutions which set the standard of radiation therapy care with the aim of helping patients live better lives. The company's technology, The CyberKnife, is used to treat multiple types of cancer and tumors throughout the body. The CyberKnife Systems automatically track, detect and correct for a tumor and patient movement in real-time during the procedure, enabling delivery of precise, high dose radiation with sub-millimetre accuracy while patients breathe normally, without manual user intervention.
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