CareRx (TSX:CRRX) Gross Margin %

: 28.19% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. CareRx's Gross Profit for the three months ended in Dec. 2023 was C$25.7 Mil. CareRx's Revenue for the three months ended in Dec. 2023 was C$91.1 Mil. Therefore, CareRx's Gross Margin % for the quarter that ended in Dec. 2023 was 28.19%.

Warning Sign:

CareRx Corp gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

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

TSX:CRRX' s Gross Margin % Range Over the Past 10 Years
Min: 28.24 Med: 30.31 Max: 38
Current: 28.24

During the past 13 years, the highest Gross Margin % of CareRx was 38.00%. The lowest was 28.24%. And the median was 30.31%.

TSX:CRRX's Gross Margin % is ranked worse than
69.03% of 607 companies
in the Healthcare Providers & Services industry
Industry Median: 41.4 vs TSX:CRRX: 28.24

CareRx had a gross margin of 28.19% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CareRx was -1.20% per year.

CareRx Gross Margin % Historical Data

The historical data trend for CareRx'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.

CareRx Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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31.60

29.01

28.66

28.80

28.24

CareRx Quarterly Data
	Mar19	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															27.42	27.98	27.80	28.99	28.19

Competitive Comparison

For the Medical Care Facilities subindustry, CareRx'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.

CareRx Gross Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, CareRx's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CareRx's Gross Margin % falls into.

CareRx Gross Margin % Calculation

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

CareRx'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 )
	=	104.7	/	370.746
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(370.746 - 266.048)	/	370.746
	=	28.24 %

CareRx'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 )
	=	25.7	/	91.097
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(91.097 - 65.42)	/	91.097
	=	28.19 %

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.

CareRx (TSX:CRRX) 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

CareRx had a gross margin of 28.19% for the quarter that ended in Dec. 2023 => Competition eroding margins

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.

CareRx Gross Margin % Related Terms

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CareRx (TSX:CRRX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » CareRx Corp (TSX:CRRX) » Definitions » Gross Margin %

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CHHHF:USA

Address

320 Bay Street, Suite 1200, Toronto, ON, CAN, M5H 4A6

Website

https://www.carerx.ca

CareRx Corp is a provider of specialty pharmacy services to seniors. The company is a national organization with a large network of pharmacy fulfilment centers strategically located across the country. This allows it to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. It takes an active role in working with its home operator partners to promote resident health, staff education, and medication system quality and efficiency. Geographically it derives revenue from the sales of goods and capitated service fees in Ontario and Western Canada.

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