Inspiration Healthcare Group (LSE:IHC) Gross Margin % : 48.59% (As of Jul. 2023)

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What is Inspiration Healthcare Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Inspiration Healthcare Group's Gross Profit for the six months ended in Jul. 2023 was £9.90 Mil. Inspiration Healthcare Group's Revenue for the six months ended in Jul. 2023 was £20.37 Mil. Therefore, Inspiration Healthcare Group's Gross Margin % for the quarter that ended in Jul. 2023 was 48.59%.

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

LSE:IHC' s Gross Margin % Range Over the Past 10 Years
Min: 42.26 Med: 45.2 Max: 54.36
Current: 45.59

During the past 13 years, the highest Gross Margin % of Inspiration Healthcare Group was 54.36%. The lowest was 42.26%. And the median was 45.20%.

LSE:IHC's Gross Margin % is ranked worse than
60.85% of 797 companies
in the Medical Devices & Instruments industry
Industry Median: 52.83 vs LSE:IHC: 45.59

Inspiration Healthcare Group had a gross margin of 48.59% for the quarter that ended in Jul. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Inspiration Healthcare Group was 0.90% per year.

Inspiration Healthcare Group Gross Margin % Historical Data

The historical data trend for Inspiration Healthcare Group'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.

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Inspiration Healthcare Group Gross Margin % Chart

Inspiration Healthcare Group Annual Data

Trend

Dec14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Gross Margin %

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45.47

48.23

48.73

50.16

43.88

Inspiration Healthcare Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Gross Margin %	Get a 7-Day Free Trial															52.46	47.78	45.13	42.64	48.59

Competitive Comparison of Inspiration Healthcare Group's Gross Margin %

For the Medical Devices subindustry, Inspiration Healthcare Group'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.

Inspiration Healthcare Group's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Inspiration Healthcare Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Inspiration Healthcare Group's Gross Margin % falls into.

Inspiration Healthcare Group Gross Margin % Calculation

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

Inspiration Healthcare Group's Gross Margin for the fiscal year that ended in Jan. 2023 is calculated as

Gross Margin % (A: Jan. 2023 )	=	Gross Profit (A: Jan. 2023 )	/	Revenue (A: Jan. 2023 )
	=	18.1	/	41.233
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(41.233 - 23.14)	/	41.233
	=	43.88 %

Inspiration Healthcare Group's Gross Margin for the quarter that ended in Jul. 2023 is calculated as

Gross Margin % (Q: Jul. 2023 )	=	Gross Profit (Q: Jul. 2023 )	/	Revenue (Q: Jul. 2023 )
	=	9.9	/	20.37
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20.37 - 10.472)	/	20.37
	=	48.59 %

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.

Inspiration Healthcare Group (LSE:IHC) 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

Inspiration Healthcare Group had a gross margin of 48.59% for the quarter that ended in Jul. 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.

Inspiration Healthcare Group Gross Margin % Related Terms

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Inspiration Healthcare Group (LSE:IHC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inspiration Healthcare Group PLC (LSE:IHC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 7/8 Commerce Park, Commerce Way, Croydon, GBR, CR0 4YL

Website

https://www.inspirationhealthcaregroup.com

Inspiration Healthcare Group PLC supplies outcome-improving medical devices in the areas of neonatal intensive care and patient warming. It operates in the Critical Care Medical Devices segment which includes Critical Care, Operating Theatre, and Home Healthcare. The company derives the maximum of its revenue from the United Kingdom through the Critical Care market division.