Gross Margin % is calculated as gross profit divided by its revenue. NovoCure's Gross Profit for the
three
months ended in Mar. 2022 was $109.8 Mil. NovoCure's Revenue for the
three
months ended in Mar. 2022 was $137.5 Mil. Therefore, NovoCure's Gross Margin % for the quarter that ended in Mar. 2022 was 79.84%.
The historical rank and industry rank for NovoCure's Gross Margin % or its related term are showing as below:
NVCR'
s Gross Margin % Range Over the Past 10 Years
Min: 32.3 Med: 67.73 Max: 78.53
Current: 78.39
During the past 9 years, the highestGross Margin % of NovoCure was 78.53%. The lowest was 32.30%. And the median was 67.73%.
NVCR's Gross Margin % is ranked better than 89.06% of 777
companies
in the Medical Devices & Instruments industry
Industry Median: 52.80
vs NVCR: 78.39
NovoCure had a gross margin of 79.84% for the quarter that ended in Mar. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NovoCure was 10.10% per year.
NovoCure Gross Margin % Historical Data
The historical data trend for NovoCure'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.
NovoCure Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
68.59
67.73
74.78
78.46
78.53
NovoCure Quarterly Data
Jun17
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Gross Margin %
80.41
78.58
77.39
77.71
79.84
Competitive Comparison
For the Medical Instruments & Supplies subindustry, NovoCure'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.
NovoCure Gross Margin % Distribution
For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NovoCure'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.
NovoCure (NAS:NVCR) 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
NovoCure had a gross margin of 79.84% for the quarter that ended in Mar. 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.
NovoCure Gross Margin % Related Terms
Thank you for viewing the detailed overview of NovoCure's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
Premium Gurus 
3.79(4.73%) Volume: 599,319 4:00PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
NAS:NVCR has been successfully added to your 
