Gross Margin % is calculated as gross profit divided by its revenue. Inotiv's Gross Profit for the
three
months ended in Dec. 2023 was $33.5 Mil. Inotiv's Revenue for the
three
months ended in Dec. 2023 was $135.5 Mil. Therefore, Inotiv's Gross Margin % for the quarter that ended in Dec. 2023 was 24.70%.
Warning Sign:
Inotiv Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Inotiv's Gross Margin % or its related term are showing as below:
NOTV'
s Gross Margin % Range Over the Past 10 Years
Min: 21.65 Med: 31.28 Max: 33.65
Current: 30.29
During the past 13 years, the highestGross Margin % of Inotiv was 33.65%. The lowest was 21.65%. And the median was 31.28%.
NOTV's Gross Margin % is ranked worse than 75.93% of 216
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595
vs NOTV: 30.29
Inotiv had a gross margin of 24.70% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Inotiv was -1.60% per year.
Inotiv Gross Margin % Historical Data
The historical data trend for Inotiv'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.
For the Diagnostics & Research subindustry, Inotiv'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.
Inotiv's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Inotiv's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Inotiv'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.
Inotiv (NAS:NOTV) 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
Inotiv had a gross margin of 24.70% 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.
Inotiv Gross Margin % Related Terms
Thank you for viewing the detailed overview of Inotiv's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Inotiv Inc is a pharmaceutical development company specializing in nonclinical and analytical drug discovery and development services to the pharmaceutical, chemical, and medical device industries. It operates in two segments; Discovery and Safety Assessment (DSA) and Research Models and Services (RMS). Through the DSA segment, it supports the discovery, nonclinical development, and clinical development needs of researchers and clinicians for small molecule drug candidates, as well as biotherapeutics and biomedical devices. Through the RMS segment, it offers access to a wide range of small and large research models for basic research and drug discovery and development, as well as specialized models for specific diseases and therapeutic areas. It earns maximum revenue from RMS Segment.
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