Gross Margin % is calculated as gross profit divided by its revenue. CareDx's Gross Profit for the
three
months ended in Dec. 2023 was $40.0 Mil. CareDx's Revenue for the
three
months ended in Dec. 2023 was $65.6 Mil. Therefore, CareDx's Gross Margin % for the quarter that ended in Dec. 2023 was 60.94%.
The historical rank and industry rank for CareDx's Gross Margin % or its related term are showing as below:
CDNA'
s Gross Margin % Range Over the Past 10 Years
Min: 48.02 Med: 63.92 Max: 68.72
Current: 63.61
During the past 12 years, the highestGross Margin % of CareDx was 68.72%. The lowest was 48.02%. And the median was 63.92%.
CDNA's Gross Margin % is ranked better than 72.43% of 214
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595
vs CDNA: 63.61
CareDx had a gross margin of 60.94% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CareDx was 1.70% per year.
CareDx Gross Margin % Historical Data
The historical data trend for CareDx'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.
For the Diagnostics & Research subindustry, CareDx'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.
CareDx's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, CareDx's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CareDx'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.
CareDx (NAS:CDNA) 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
CareDx had a gross margin of 60.94% 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.
CareDx Gross Margin % Related Terms
Thank you for viewing the detailed overview of CareDx's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CareDx Inc operates as a precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. It offers testing services, products, and digital solutions along with the pre-and post-transplant patient journey and is a provider of genomics-based information for transplant patients. Its primary operations are in Brisbane, California; Omaha, Nebraska; Fremantle, Australia and Stockholm, Sweden.
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