Fisher & Paykel Healthcare (NZSE:FPH) Gross Margin % : 61.07% (As of Sep. 2023)

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What is Fisher & Paykel Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fisher & Paykel Healthcare's Gross Profit for the six months ended in Sep. 2023 was NZ$498 Mil. Fisher & Paykel Healthcare's Revenue for the six months ended in Sep. 2023 was NZ$816 Mil. Therefore, Fisher & Paykel Healthcare's Gross Margin % for the quarter that ended in Sep. 2023 was 61.07%.

Warning Sign:

Fisher & Paykel Healthcare Corp Ltd 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 Fisher & Paykel Healthcare's Gross Margin % or its related term are showing as below:

NZSE:FPH' s Gross Margin % Range Over the Past 10 Years
Min: 54.62 Med: 63.43 Max: 66.92
Current: 60.06

During the past 13 years, the highest Gross Margin % of Fisher & Paykel Healthcare was 66.92%. The lowest was 54.62%. And the median was 63.43%.

NZSE:FPH's Gross Margin % is ranked better than
60.18% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.575 vs NZSE:FPH: 60.06

Fisher & Paykel Healthcare had a gross margin of 61.07% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fisher & Paykel Healthcare was -2.30% per year.

Fisher & Paykel Healthcare Gross Margin % Historical Data

The historical data trend for Fisher & Paykel 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.

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Fisher & Paykel Healthcare Gross Margin % Chart

Fisher & Paykel Healthcare Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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66.92

66.40

62.76

61.70

59.54

Fisher & Paykel Healthcare Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															62.22	61.10	60.06	59.14	61.07

Competitive Comparison of Fisher & Paykel Healthcare's Gross Margin %

For the Medical Instruments & Supplies subindustry, Fisher & Paykel 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.

Fisher & Paykel Healthcare's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Fisher & Paykel Healthcare's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fisher & Paykel Healthcare's Gross Margin % falls into.

Fisher & Paykel Healthcare Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Fisher & Paykel Healthcare's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	945.9	/	1588.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1588.6 - 642.7)	/	1588.6
	=	59.54 %

Fisher & Paykel Healthcare's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	498.2	/	815.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(815.8 - 317.6)	/	815.8
	=	61.07 %

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.

Fisher & Paykel Healthcare (NZSE:FPH) 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

Fisher & Paykel Healthcare had a gross margin of 61.07% for the quarter that ended in Sep. 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.

Fisher & Paykel Healthcare Gross Margin % Related Terms

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Fisher & Paykel Healthcare (NZSE:FPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Fisher & Paykel Healthcare Corp Ltd (NZSE:FPH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FSPKF:USA FPLB:Germany FPH:Australia

Address

15 Maurice Paykel Place, East Tamaki, Auckland, NTL, NZL, 2013

Website

https://www.fphcare.com

Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use humidifiers, masks and related consumables and the number three player in the at-home treatment of sleep apnoea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns 42% of its revenue in the U.S., 32% in Europe, 18% in Asia-Pacific and the remaining 8% in emerging markets. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand and Mexico and has a multichannel distribution model.