Gross Margin % is calculated as gross profit divided by its revenue. Change Healthcare's Gross Profit for the
three
months ended in Jun. 2022 was $474 Mil. Change Healthcare's Revenue for the
three
months ended in Jun. 2022 was $884 Mil. Therefore, Change Healthcare's Gross Margin % for the quarter that ended in Jun. 2022 was 53.62%.
The historical rank and industry rank for Change Healthcare's Gross Margin % or its related term are showing as below:
CHNG'
s Gross Margin % Range Over the Past 10 Years
Min: 50.44 Med: 53.03 Max: 57.28
Current: 53.06
During the past 6 years, the highestGross Margin % of Change Healthcare was 57.28%. The lowest was 50.44%. And the median was 53.03%.
CHNG's Gross Margin % is ranked better than 63.08% of 604
companies
in the Healthcare Providers & Services industry
Industry Median: 43.06
vs CHNG: 53.06
Change Healthcare had a gross margin of 53.62% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Change Healthcare was 0.00% per year.
Change Healthcare Gross Margin % Historical Data
The historical data trend for Change Healthcare'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.
Change Healthcare Annual Data
Trend
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Gross Margin %
-
-
57.28
50.44
53.03
Change Healthcare Quarterly Data
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
53.53
51.72
52.77
53.98
53.62
Competitive Comparison
For the Health Information Services subindustry, Change Healthcare'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.
Change Healthcare Gross Margin % Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Change Healthcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Change Healthcare'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.
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
Change Healthcare had a gross margin of 53.62% for the quarter that ended in Jun. 2022 => 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.
Change Healthcare Gross Margin % Related Terms
Thank you for viewing the detailed overview of Change Healthcare's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Change Healthcare is a spin-off of various healthcare processing and consulting services acquired by McKesson over numerous years. Recently, these processing assets were contributed to a joint venture and in June 2019 public shares were issued with McKesson retaining the majority interest. As of the end of the March 2020 quarter, McKesson distributed all its interest in the public processor. Core services consist of insurance (healthcare) claim clearinghouse for healthcare payers in addition to administrative and consulting services to assist healthcare providers improve reimbursement coding, billing, and collections.
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