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Icon Gross Margin %

: 27.24% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Icon's Gross Profit for the three months ended in Sep. 2021 was $508 Mil. Icon's Revenue for the three months ended in Sep. 2021 was $1,866 Mil. Therefore, Icon's Gross Margin % for the quarter that ended in Sep. 2021 was 27.24%.

Warning Sign:

Icon PLC gross margin has been in long term decline. The average rate of decline per year is -8.9%.


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

NAS:ICLR' s Gross Margin % Range Over the Past 10 Years
Min: 27.67   Med: 36.18   Max: 42.31
Current: 27.67

27.67
42.31

During the past 13 years, the highest Gross Margin % of Icon was 42.31%. The lowest was 27.67%. And the median was 36.18%.

NAS:ICLR's Gross Margin % is ranked lower than
79% of the 226 Companies
in the Medical Diagnostics & Research industry.

( Industry Median: 46.97 vs. NAS:ICLR: 27.67 )

Icon had a gross margin of 27.24% for the quarter that ended in Sep. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Icon was -8.90% per year.


Icon Gross Margin % Historical Data

The historical data trend for Icon'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.

Icon Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.31 41.58 29.95 29.64 29.22

Icon Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 29.69 29.58 27.03 27.55 27.24

Competitive Comparison

For the Diagnostics & Research subindustry, Icon'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.

   

Icon Gross Margin % Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Icon's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Icon's Gross Margin % falls into.



Icon Gross Margin % Calculation

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

Icon's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=817.4 / 2797.288
=(Revenue - Cost of Goods Sold) / Revenue
=(2797.288 - 1979.883) / 2797.288
=29.22 %

Icon's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=508.4 / 1866.352
=(Revenue - Cost of Goods Sold) / Revenue
=(1866.352 - 1357.942) / 1866.352
=27.24 %

* 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.


Icon  (NAS:ICLR) 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

Icon had a gross margin of 27.24% for the quarter that ended in Sep. 2021 => 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.


Icon Gross Margin % Related Terms

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


Icon Business Description

Icon logo
Industry
Traded in Other Exchanges
Address
South County Business Park, Leopardstown, Dublin, IRL, 18
Icon is a global late-stage contract research organization that provides drug development and clinical trial services to pharmaceutical, biotechnology, and medical device firms. While the vast majority of its revenue comes from clinical research, Icon also offers ancillary services such as laboratory and imaging capabilities. The company is headquartered in Ireland.

Icon Headlines

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