Gross Margin % is calculated as gross profit divided by its revenue. RadNet's Gross Profit for the
three
months ended in Dec. 2023 was $64 Mil. RadNet's Revenue for the
three
months ended in Dec. 2023 was $420 Mil. Therefore, RadNet's Gross Margin % for the quarter that ended in Dec. 2023 was 15.17%.
The historical rank and industry rank for RadNet's Gross Margin % or its related term are showing as below:
RDNT'
s Gross Margin % Range Over the Past 10 Years
Min: 9.88 Med: 12.76 Max: 16.01
Current: 13.7
During the past 13 years, the highestGross Margin % of RadNet was 16.01%. The lowest was 9.88%. And the median was 12.76%.
RDNT's Gross Margin % is ranked worse than 90.74% of 216
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595
vs RDNT: 13.70
RadNet had a gross margin of 15.17% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for RadNet was 3.00% per year.
RadNet Gross Margin % Historical Data
The historical data trend for RadNet'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 Diagnostics & Research subindustry, RadNet'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.
RadNet's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, RadNet's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RadNet'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.
RadNet (NAS:RDNT) 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
RadNet had a gross margin of 15.17% for the quarter that ended in Dec. 2023 => No sustainable 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.
RadNet Gross Margin % Related Terms
Thank you for viewing the detailed overview of RadNet's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
RadNet Inc is a national provider of diagnostic imaging services that operates in two business segments; Imaging Center segment provides physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures, and Artificial Intelligence segment develops and deploys clinical applications to enhance interpretation of medical images and improve patient outcomes with an emphasis on brain, breast, prostate, and pulmonary diagnostics. The company derives a majority of its revenue from the Imaging center segment.
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