Gross Margin % is calculated as gross profit divided by its revenue. Cara Therapeutics's Gross Profit for the
three
months ended in Dec. 2023 was $2.40 Mil. Cara Therapeutics's Revenue for the
three
months ended in Dec. 2023 was $3.00 Mil. Therefore, Cara Therapeutics's Gross Margin % for the quarter that ended in Dec. 2023 was 79.76%.
The historical rank and industry rank for Cara Therapeutics's Gross Margin % or its related term are showing as below:
CARA'
s Gross Margin % Range Over the Past 10 Years
Min: 70.56 Med: 76.61 Max: 82.65
Current: 70.56
During the past 13 years, the highestGross Margin % of Cara Therapeutics was 82.65%. The lowest was 70.56%. And the median was 76.61%.
CARA's Gross Margin % is ranked better than 62.5% of 736
companies
in the Biotechnology industry
Industry Median: 59.905
vs CARA: 70.56
Cara Therapeutics had a gross margin of 79.76% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cara Therapeutics was 0.00% per year.
Cara Therapeutics Gross Margin % Historical Data
The historical data trend for Cara Therapeutics'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 Cara Therapeutics's Gross Margin %
For the Biotechnology subindustry, Cara Therapeutics'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.
Cara Therapeutics's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Cara Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cara Therapeutics'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.
Cara Therapeutics (NAS:CARA) 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
Cara Therapeutics had a gross margin of 79.76% for the quarter that ended in Dec. 2023 => Durable 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.
Cara Therapeutics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Cara Therapeutics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cara Therapeutics (Cara Therapeutics) Business Description
Cara Therapeutics Inc is an emerging biotechnology company involved in the development of novel therapeutics to treat human diseases associated with inflammation, pain, and pruritus. Cara's most advanced compound, CR845, aims to treat acute pain and pruritus. This patented compound has analgesic, anti-inflammatory, and antipruritic properties that can be used for multiple therapeutic applications. Additionally, Cara's objective is to use its proprietary drug-screening technology to develop a future pipeline of first-in-class molecules with analgesic and anti-inflammatory features.
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