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WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Gross Margin % : 35.52% (As of Sep. 2015)


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What is WuXi PharmaTech (Cayman) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. WuXi PharmaTech (Cayman)'s Gross Profit for the three months ended in Sep. 2015 was $75.9 Mil. WuXi PharmaTech (Cayman)'s Revenue for the three months ended in Sep. 2015 was $213.6 Mil. Therefore, WuXi PharmaTech (Cayman)'s Gross Margin % for the quarter that ended in Sep. 2015 was 35.52%.


The historical rank and industry rank for WuXi PharmaTech (Cayman)'s Gross Margin % or its related term are showing as below:


WX's Gross Margin % is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 45.595
* Ranked among companies with meaningful Gross Margin % only.

WuXi PharmaTech (Cayman) had a gross margin of 35.52% for the quarter that ended in Sep. 2015 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for WuXi PharmaTech (Cayman) was 0.00% per year.


WuXi PharmaTech (Cayman) Gross Margin % Historical Data

The historical data trend for WuXi PharmaTech (Cayman)'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.

WuXi PharmaTech (Cayman) Gross Margin % Chart

WuXi PharmaTech (Cayman) Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.19 38.42 36.65 36.60 37.34

WuXi PharmaTech (Cayman) Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.14 36.92 34.89 34.36 35.52

Competitive Comparison of WuXi PharmaTech (Cayman)'s Gross Margin %

For the Diagnostics & Research subindustry, WuXi PharmaTech (Cayman)'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.


WuXi PharmaTech (Cayman)'s Gross Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, WuXi PharmaTech (Cayman)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where WuXi PharmaTech (Cayman)'s Gross Margin % falls into.



WuXi PharmaTech (Cayman) Gross Margin % Calculation

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

WuXi PharmaTech (Cayman)'s Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=251.7 / 674.279
=(Revenue - Cost of Goods Sold) / Revenue
=(674.279 - 422.536) / 674.279
=37.34 %

WuXi PharmaTech (Cayman)'s Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=75.9 / 213.642
=(Revenue - Cost of Goods Sold) / Revenue
=(213.642 - 137.753) / 213.642
=35.52 %

* 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.


WuXi PharmaTech (Cayman)  (NYSE:WX) 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

WuXi PharmaTech (Cayman) had a gross margin of 35.52% for the quarter that ended in Sep. 2015 => 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.


WuXi PharmaTech (Cayman) Gross Margin % Related Terms

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WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Business Description

Traded in Other Exchanges
N/A
Address
WuXi PharmaTech (Cayman) Inc was incorporated on March 16, 2007 and commenced operations and began offering pharmaceutical and biotechnology R&D outsourcing services in 2001. The Company is a pharmaceutical, biotechnology and medical device R&D services company, with operations in China and the United States. It provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers, which includes pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its customers in shortening the cycle and lowering the cost of pharmaceutical and medical device R&D by providing cost-effective and efficient outsourcing solutions. Its primary China-based facilities include 1,127,000 square feet of facilities in the China (Shanghai) Pilot Free Trade Zone used for synthetic chemistry, biology, medicinal chemistry, DMPK, formulation, analytical development, manufacturing process chemistry, research manufacturing, bioanalytical services, genomics, and biologics drug discovery and development; an R&D center in Tianjin engaged in synthetic chemistry and medicinal chemistry; a facility in Wuhan providing services in synthetic chemistry and medicinal chemistry; a small-scale cGMP clinical manufacturing facility and a large-scale cGMP commercial manufacturing plant in the Jinshan district of Shanghai; a large-scale non-GMP manufacturing plant in Changzhou; a preclinical toxicology facility in Suzhou; a laboratory for manufacturing research reagents in Suzhou; and a biologics manufacturing facility in Wuxi. It also offers services in biologics and medical device testing in three FDA-registered facilities in the United States. The Company has two segments: Laboratory services and Manufacturing services. Laboratory services are provided for pharmaceutical, biotechnology and medical device companies. China-based laboratory services for pharmaceutical and biotechnology companies include services for small molecules, such as synthetic chemistry, biology, medicinal chemistry, DMPK/ADME, formulation, analytical chemistry, toxicology, clinical development, bioanalytical services, genomics, research reagent production, and clinical services, as well as services for discovery and development of biologics. U.S.-based laboratory services include testing services for biologics, medical devices, and combination products. Manufacturing services include the development of manufacturing processes and the production of intermediates and active pharmaceutical ingredients, or APIs, for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologics. The Company offers testing and development services to ensure that a medical device is manufactured, packaged and sterilized in accordance with GMP guidelines. Its in vivo and in vitro toxicology testing includes biocompatibility or safe

WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Headlines

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