Gross Margin % is calculated as gross profit divided by its revenue. Retractable Technologies's Gross Profit for the
three
months ended in Dec. 2023 was $1.54 Mil. Retractable Technologies's Revenue for the
three
months ended in Dec. 2023 was $14.29 Mil. Therefore, Retractable Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 10.78%.
Warning Sign:
Retractable Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Retractable Technologies's Gross Margin % or its related term are showing as below:
RVP'
s Gross Margin % Range Over the Past 10 Years
Min: 20.89 Med: 34.25 Max: 50.62
Current: 20.89
During the past 13 years, the highestGross Margin % of Retractable Technologies was 50.62%. The lowest was 20.89%. And the median was 34.25%.
RVP's Gross Margin % is ranked worse than 87.47% of 798
companies
in the Medical Devices & Instruments industry
Industry Median: 53.615
vs RVP: 20.89
Retractable Technologies had a gross margin of 10.78% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Retractable Technologies was -6.10% per year.
Retractable Technologies Gross Margin % Historical Data
The historical data trend for Retractable Technologies'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.
* Premium members only.
Retractable Technologies Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
33.83
45.21
50.62
29.80
20.89
Retractable Technologies Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
33.93
26.09
4.73
41.81
10.78
Competitive Comparison
For the Medical Instruments & Supplies subindustry, Retractable Technologies'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.
Retractable Technologies Gross Margin % Distribution
For the Medical Devices & Instruments industry and Healthcare sector, Retractable Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Retractable Technologies'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.
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
Retractable Technologies had a gross margin of 10.78% 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.
Retractable Technologies Gross Margin % Related Terms
Thank you for viewing the detailed overview of Retractable Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Retractable Technologies (Retractable Technologies) Business Description
Retractable Technologies Inc designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession. The company's products are the VanishPoint 0.5mL insulin syringe; 1mL tuberculin, insulin, and allergy antigen syringes; 0.5mL, 1mL, 2mL, 3mL, 5mL, and 10mL syringes; the small diameter tube adapter; the blood collection tube holder; the allergy tray; the IV safety catheter; the Patient Safe syringes; the Patient Safe Luer Cap; the VanishPoint Blood Collection Set; and the EasyPoint needle, as well as a standard 3mL syringe packaged with an EasyPoint needle. The company also sells VanishPoint autodisable syringes in the international market in addition to its other products.
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