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Healthcare Services Group Gross Margin %

: 10.71% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Healthcare Services Group's Gross Profit for the three months ended in Jun. 2022 was $45 Mil. Healthcare Services Group's Revenue for the three months ended in Jun. 2022 was $425 Mil. Therefore, Healthcare Services Group's Gross Margin % for the quarter that ended in Jun. 2022 was 10.71%.


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

HCSG' s Gross Margin % Range Over the Past 10 Years
Min: 10.66   Med: 13.54   Max: 15.22
Current: 11.44


During the past 13 years, the highest Gross Margin % of Healthcare Services Group was 15.22%. The lowest was 10.66%. And the median was 13.54%.

HCSG's Gross Margin % is ranked worse than
92.46% of 610 companies
in the Healthcare Providers & Services industry
Industry Median: 42.82 vs HCSG: 11.44

Healthcare Services Group had a gross margin of 10.71% for the quarter that ended in Jun. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Healthcare Services Group was 0.70% per year.


Healthcare Services Group Gross Margin % Historical Data

The historical data trend for Healthcare Services Group'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.

Healthcare Services Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.47 11.71 12.38 15.22 13.82

Healthcare Services Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 15.51 12.22 10.28 12.55 10.71

Competitive Comparison

For the Medical Care Facilities subindustry, Healthcare Services Group'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.

   

Healthcare Services Group Gross Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Healthcare Services Group's Gross Margin % falls into.



Healthcare Services Group Gross Margin % Calculation

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

Healthcare Services Group's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=226.9 / 1641.959
=(Revenue - Cost of Goods Sold) / Revenue
=(1641.959 - 1415.082) / 1641.959
=13.82 %

Healthcare Services Group's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=45.5 / 424.857
=(Revenue - Cost of Goods Sold) / Revenue
=(424.857 - 379.37) / 424.857
=10.71 %

* 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.


Healthcare Services Group  (NAS:HCSG) 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

Healthcare Services Group had a gross margin of 10.71% for the quarter that ended in Jun. 2022 => 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.


Healthcare Services Group Gross Margin % Related Terms

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


Healthcare Services Group Business Description

Healthcare Services Group logo
Traded in Other Exchanges
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Simmons Kurt Jr director 3220 TILLMAN DRIVE BENSALEM PA 19020
Brophy Andrew M officer: Acting Accounting Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Orr Patrick J officer: EVP & Chief Revenue Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Grant Laura K director 3220 TILLMAN DRIVE BENSALEM PA 19020
Castagnino Daniela director 3220 TILLMAN DRIVE, SUITE 300 BENSALEM PA 19020
Kush Andrew officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Hurlock David officer: Executive Vice President & COO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Visconto Jude director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Bundick Jason J officer: General Counsel & Secretary 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcfadden John J Jr director 19 PURDUE DRIVE RICHBORO PA 18954
Ottaviano Dino D director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Casey Diane S director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Frome Robert L director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Briggs John director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Moss Robert J director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020

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