Gross Margin % is calculated as gross profit divided by its revenue. MultiPlan's Gross Profit for the
three
months ended in Dec. 2023 was $183.5 Mil. MultiPlan's Revenue for the
three
months ended in Dec. 2023 was $244.1 Mil. Therefore, MultiPlan's Gross Margin % for the quarter that ended in Dec. 2023 was 75.15%.
Warning Sign:
MultiPlan Corp gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for MultiPlan's Gross Margin % or its related term are showing as below:
MPLN'
s Gross Margin % Range Over the Past 10 Years
Min: 66.02 Med: 82.71 Max: 85.64
Current: 75.51
During the past 6 years, the highestGross Margin % of MultiPlan was 85.64%. The lowest was 66.02%. And the median was 82.71%.
MPLN's Gross Margin % is ranked better than 82.37% of 607
companies
in the Healthcare Providers & Services industry
Industry Median: 41.24
vs MPLN: 75.51
MultiPlan had a gross margin of 75.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MultiPlan was -1.50% per year.
MultiPlan Gross Margin % Historical Data
The historical data trend for MultiPlan'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 MultiPlan's Gross Margin %
For the Health Information Services subindustry, MultiPlan'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.
MultiPlan's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, MultiPlan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MultiPlan'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.
MultiPlan (NYSE:MPLN) 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
MultiPlan had a gross margin of 75.15% 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.
MultiPlan Gross Margin % Related Terms
Thank you for viewing the detailed overview of MultiPlan's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
MultiPlan Corp is a provider of data analytics and technology-enabled solutions designed to bring affordability, efficiency, and fairness to the U.S. healthcare industry. The company interprets clients' needs and customizes solutions that combine its payment integrity, network-based, and analytics-based services. The Company's focus is being a value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry.
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