Gross Margin % is calculated as gross profit divided by its revenue. NovaBay Pharmaceuticals's Gross Profit for the
three
months ended in Dec. 2023 was $1.82 Mil. NovaBay Pharmaceuticals's Revenue for the
three
months ended in Dec. 2023 was $3.73 Mil. Therefore, NovaBay Pharmaceuticals's Gross Margin % for the quarter that ended in Dec. 2023 was 48.70%.
Warning Sign:
NovaBay Pharmaceuticals Inc gross margin has been in long-term decline. The average rate of decline per year is -9.1%.
The historical rank and industry rank for NovaBay Pharmaceuticals's Gross Margin % or its related term are showing as below:
NBY'
s Gross Margin % Range Over the Past 10 Years
Min: 53.61 Med: 67.54 Max: 87.98
Current: 53.61
During the past 13 years, the highestGross Margin % of NovaBay Pharmaceuticals was 87.98%. The lowest was 53.61%. And the median was 67.54%.
NBY's Gross Margin % is ranked worse than 55.24% of 735
companies
in the Biotechnology industry
Industry Median: 59.86
vs NBY: 53.61
NovaBay Pharmaceuticals had a gross margin of 48.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NovaBay Pharmaceuticals was -9.10% per year.
NovaBay Pharmaceuticals Gross Margin % Historical Data
The historical data trend for NovaBay Pharmaceuticals'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 NovaBay Pharmaceuticals's Gross Margin %
For the Biotechnology subindustry, NovaBay Pharmaceuticals'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.
NovaBay Pharmaceuticals's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, NovaBay Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NovaBay Pharmaceuticals'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
NovaBay Pharmaceuticals had a gross margin of 48.70% 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.
NovaBay Pharmaceuticals Gross Margin % Related Terms
Thank you for viewing the detailed overview of NovaBay Pharmaceuticals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NovaBay Pharmaceuticals (NovaBay Pharmaceuticals) Business Description
NovaBay Pharmaceuticals Inc is a biopharmaceutical company that develops and sells scientifically-created and clinically-proven eyecare and skincare products. Its leading product, Avenova Antimicrobial Lid and Lash Solution (Avenova Spray), is proven in laboratory testing to have broad antimicrobial properties as it removes foreign material including microorganisms and debris from the skin around the eye, including the eyelid. Avenova Spray is available direct to consumers through online distribution channels and is also often prescribed and dispensed by eyecare professionals for blepharitis and dry-eye disease.
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