Sotera Health Co (Sotera Health Co) Gross Margin % : 58.05% (As of Dec. 2023)

View and export this data going back to 2020. Start your Free Trial

What is Sotera Health Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sotera Health Co's Gross Profit for the three months ended in Dec. 2023 was $180 Mil. Sotera Health Co's Revenue for the three months ended in Dec. 2023 was $310 Mil. Therefore, Sotera Health Co's Gross Margin % for the quarter that ended in Dec. 2023 was 58.05%.

The historical rank and industry rank for Sotera Health Co's Gross Margin % or its related term are showing as below:

SHC' s Gross Margin % Range Over the Past 10 Years
Min: 47.88 Med: 54.61 Max: 55.68
Current: 55.01

During the past 6 years, the highest Gross Margin % of Sotera Health Co was 55.68%. The lowest was 47.88%. And the median was 54.61%.

SHC's Gross Margin % is ranked better than
58.8% of 216 companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595 vs SHC: 55.01

Sotera Health Co had a gross margin of 58.05% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sotera Health Co was 2.90% per year.

Sotera Health Co Gross Margin % Historical Data

The historical data trend for Sotera Health Co'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.

Sotera Health Co Gross Margin % Chart

Sotera Health Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

50.81

54.22

55.68

55.50

55.00

Sotera Health Co Quarterly Data
	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															56.33	50.55	54.68	55.47	58.05

Competitive Comparison of Sotera Health Co's Gross Margin %

For the Diagnostics & Research subindustry, Sotera Health Co'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.

Sotera Health Co's Gross Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sotera Health Co's Gross Margin % falls into.

Sotera Health Co Gross Margin % Calculation

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

Sotera Health Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	577.2	/	1049.288
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1049.288 - 472.13)	/	1049.288
	=	55.00 %

Sotera Health Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	180.1	/	310.239
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(310.239 - 130.156)	/	310.239
	=	58.05 %

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.

Sotera Health Co (NAS:SHC) 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

Sotera Health Co had a gross margin of 58.05% 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.

Sotera Health Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Sotera Health Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Sotera Health Co (Sotera Health Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Sotera Health Co (NAS:SHC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9100 South Hills Boulevard, Suite 300, Broadview Heights, OH, USA, 44147

Website

https://investors.soterahealth.com

Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three segments: Sterigenics, Nordion, and Nelson Labs. Sterigenics provides outsourced terminal sterilization and irradiation services for medical device, pharmaceutical, food safety, and advanced applications; Nordion provides Co-60 and gamma irradiators, which are the key components to the gamma sterilization process; and Nelson Labs provides outsourced microbiological and analytical chemistry testing for the medical device and pharmaceutical industries. Its geographical segments are the United States, Canada, Europe, and other regions.

Executives

Jonathan M. Lyons	officer: Sr. Vice President, CFO	9100 SOUTH HILLS BLVD., SUITE 300, BROADVIEW HEIGHTS OH 44147
Robert Brown Knauss	director	C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
David E. Wheadon	director	C/O ASSERTIO THERAPEUTICS, INC., 100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045
Alexander Dimitrief	officer: SVP, General Counsel and Sec.	GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Michael F Biehl	officer: Interim CFO	5885 LANDBROOK DRIVE SUITE 205, CLEVELAND OH 44124
Terry Hammons	officer: SVP, GC and Secretary	C/O SIMPSON MANUFACTURING CO., INC., 5956 W LAS POSITAS BLVD, PLEASANTON CA 94588
Michael P Rutz	officer: President of Sterigenics	8755 WEST HIGGINS ROAD, SUITE 500, CHICAGO IL 60631
Wp Xi Partners, L.p.	director, 10 percent owner	C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, 450 LEXINGTON AVENUE NY 10017
Warburg Pincus & Co.	director, 10 percent owner	450 LEXINGTON AVENUE, NEW YORK, NY NY 100173147
Gtcr Fund Xi/a Lp	director, 10 percent owner	300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Matthew J Klaben	officer: SVP, GC and Secretary	ONE INFINITY CORPORATE CENTRE DRIVE, SUITE 300, GARFIELD HEIGHTS OH 44125
Petras Michael B. Jr.	director, officer: Chairman & CEO	9100 SOUTH HILLS BLVD, SUITE 300, BROADVIEW HEIGHTS OH 44147
Stephanie Geveda	director	450 LEXINGTON AVENUE, C/O WARBURG PINCUS LLC, NEW YORK NY 10017
Sean Laurence Cunningham	director	300 N. LASALLE SUITE 5600, CHICAGO IL 60654
Scott J. Leffler	officer: CFO and Treasurer	C/O CLOVER HEALTH INVESTMENTS, CORP., 3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067