Gross Margin % is calculated as gross profit divided by its revenue. Phreesia's Gross Profit for the
three
months ended in Jan. 2024 was $63.2 Mil. Phreesia's Revenue for the
three
months ended in Jan. 2024 was $95.0 Mil. Therefore, Phreesia's Gross Margin % for the quarter that ended in Jan. 2024 was 66.56%.
The historical rank and industry rank for Phreesia's Gross Margin % or its related term are showing as below:
PHR'
s Gross Margin % Range Over the Past 10 Years
Min: 61.1 Med: 62.96 Max: 65.2
Current: 65.2
During the past 7 years, the highestGross Margin % of Phreesia was 65.20%. The lowest was 61.10%. And the median was 62.96%.
PHR's Gross Margin % is ranked better than 73.15% of 607
companies
in the Healthcare Providers & Services industry
Industry Median: 41.24
vs PHR: 65.20
Phreesia had a gross margin of 66.56% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Phreesia was -0.10% per year.
Phreesia Gross Margin % Historical Data
The historical data trend for Phreesia'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 Phreesia's Gross Margin %
For the Health Information Services subindustry, Phreesia'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.
Phreesia's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Phreesia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Phreesia'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.
Phreesia (NYSE:PHR) 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
Phreesia had a gross margin of 66.56% for the quarter that ended in Jan. 2024 => 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.
Phreesia Gross Margin % Related Terms
Thank you for viewing the detailed overview of Phreesia's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Phreesia Inc is a provider of comprehensive software solutions that improves the operational and financial performance of healthcare organizations by activating patients in their care to optimize patient health outcomes. Through its SaaS-based technology platform, it offers healthcare services clients a robust suite of integrated solutions that manage patient access, registration, payments, and clinical support. The Phreesia Platform encompasses a comprehensive range of technologies and services, including, but not limited to, initial patient contact, registration, appointment scheduling, payments, and post-appointment patient surveys.
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