Gross Margin % is calculated as gross profit divided by its revenue. Steris's Gross Profit for the
three
months ended in Dec. 2023 was $603 Mil. Steris's Revenue for the
three
months ended in Dec. 2023 was $1,396 Mil. Therefore, Steris's Gross Margin % for the quarter that ended in Dec. 2023 was 43.18%.
The historical rank and industry rank for Steris's Gross Margin % or its related term are showing as below:
STE'
s Gross Margin % Range Over the Past 10 Years
Min: 39.28 Med: 42.04 Max: 43.98
Current: 43.6
During the past 13 years, the highestGross Margin % of Steris was 43.98%. The lowest was 39.28%. And the median was 42.04%.
STE's Gross Margin % is ranked worse than 63.44% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.295
vs STE: 43.60
Steris had a gross margin of 43.18% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Steris was 1.00% per year.
Steris Gross Margin % Historical Data
The historical data trend for Steris'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, Steris'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.
Steris's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Steris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Steris'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.
Steris (NYSE:STE) 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
Steris had a gross margin of 43.18% 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.
Steris Gross Margin % Related Terms
Thank you for viewing the detailed overview of Steris's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Steris is an Ireland-domiciled medical device company focused on sterilization services and infection prevention. The company is the global leader in contract sterilization services, ensuring the safe delivery of single-use and implantable medical equipment to hospitals around the world. Additionally, Steris sells sterilizers, washer-disinfectors, and other decontamination equipment and supplies for use by care provider facilities and in biopharma manufacturing sites. Domiciled in the United States before its 2015 inversion to Ireland, the firm continues to derive roughly 70% of revenue from its U.S. operations, 10% from the United Kingdom, and the remaining 20% from other international regions.
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