Gross Margin % is calculated as gross profit divided by its revenue. SI-BONE's Gross Profit for the
three
months ended in Dec. 2023 was $28.7 Mil. SI-BONE's Revenue for the
three
months ended in Dec. 2023 was $38.9 Mil. Therefore, SI-BONE's Gross Margin % for the quarter that ended in Dec. 2023 was 73.80%.
Warning Sign:
SI-BONE Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for SI-BONE's Gross Margin % or its related term are showing as below:
SIBN'
s Gross Margin % Range Over the Past 10 Years
Min: 78.78 Med: 88.15 Max: 91.27
Current: 78.78
During the past 8 years, the highestGross Margin % of SI-BONE was 91.27%. The lowest was 78.78%. And the median was 88.15%.
SIBN's Gross Margin % is ranked better than 88.57% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.575
vs SIBN: 78.78
SI-BONE had a gross margin of 73.80% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SI-BONE was -2.50% per year.
SI-BONE Gross Margin % Historical Data
The historical data trend for SI-BONE'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 SI-BONE's Gross Margin %
For the Medical Devices subindustry, SI-BONE'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.
SI-BONE's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, SI-BONE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SI-BONE'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.
SI-BONE (NAS:SIBN) 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
SI-BONE had a gross margin of 73.80% 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.
SI-BONE Gross Margin % Related Terms
Thank you for viewing the detailed overview of SI-BONE's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SI-BONE Inc is a medical device company, that develops and commercializes a proprietary minimally invasive surgical implant system in the United States and Internationally. It offers iFuse, an implant system to fuse the sacroiliac joint to treat sacroiliac joint dysfunction that causes lower back pain.
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