Gross Margin % is calculated as gross profit divided by its revenue. Penumbra's Gross Profit for the
three
months ended in Dec. 2023 was $187 Mil. Penumbra's Revenue for the
three
months ended in Dec. 2023 was $285 Mil. Therefore, Penumbra's Gross Margin % for the quarter that ended in Dec. 2023 was 65.69%.
The historical rank and industry rank for Penumbra's Gross Margin % or its related term are showing as below:
PEN'
s Gross Margin % Range Over the Past 10 Years
Min: 60.34 Med: 64.97 Max: 67.95
Current: 64.49
During the past 12 years, the highestGross Margin % of Penumbra was 67.95%. The lowest was 60.34%. And the median was 64.97%.
PEN's Gross Margin % is ranked better than 68.59% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs PEN: 64.49
Penumbra had a gross margin of 65.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Penumbra was -0.80% per year.
Penumbra Gross Margin % Historical Data
The historical data trend for Penumbra'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 Medical Devices subindustry, Penumbra'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.
Penumbra Gross Margin % Distribution
For the Medical Devices & Instruments industry and Healthcare sector, Penumbra's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Penumbra'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.
Penumbra (NYSE:PEN) 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
Penumbra had a gross margin of 65.69% 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.
Penumbra Gross Margin % Related Terms
Thank you for viewing the detailed overview of Penumbra's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Penumbra Inc develops and manufactures medical devices for the neurovascular and peripheral vascular markets. Its products are primarily sold to hospitals and are developed for use by specialist physicians. The neurovascular product category contributes to the majority of revenue. Within the neurovascular business, the firm offers products for neurovascular access, ischemic stroke, neurovascular embolization, and neurosurgical tool markets. In the peripheral vascular business, the firm sells devices related to peripheral embolization and peripheral thrombectomy. Penumbra generates the majority of its revenue in the United States.
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