National Healthcare Corp gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for National Healthcare's Gross Margin % or its related term are showing as below:
NHC'
s Gross Margin % Range Over the Past 10 Years
Min: 34.11 Med: 40.53 Max: 41.46
Current: 37.6
During the past 13 years, the highestGross Margin % of National Healthcare was 41.46%. The lowest was 34.11%. And the median was 40.53%.
NHC's Gross Margin % is ranked worse than 54.86% of 607
companies
in the Healthcare Providers & Services industry
Industry Median: 41.24
vs NHC: 37.60
National Healthcare had a gross margin of 38.00% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for National Healthcare was -2.30% per year.
National Healthcare Gross Margin % Historical Data
The historical data trend for National 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.
Competitive Comparison of National Healthcare's Gross Margin %
For the Medical Care Facilities subindustry, National 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.
National Healthcare's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, National Healthcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where National 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.
National Healthcare (AMEX:NHC) 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
National Healthcare had a gross margin of 38.00% for the quarter that ended in Dec. 2023 => 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.
National Healthcare Gross Margin % Related Terms
Thank you for viewing the detailed overview of National Healthcare's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
National Healthcare (National Healthcare) Business Description
National Healthcare Corp Provides long-term care facilities. Its principal business includes the operation of skilled nursing facilities, assisted living facilities, independent living facilities, and home care programs. The company's activities include providing sub-acute and post-acute skilled nursing care, intermediate nursing care, rehabilitative care, memory and Alzheimer's care, senior living services, and home health care services. In addition, the company also provides management services, accounting, and financial services, as well as insurance services to third-party operators of healthcare facilities. Its reportable segments include Inpatient services, and Home care hospice services. Generating, a majority of its revenue from Inpatient services.
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