Clover Health Investments (Clover Health Investments) Gross Margin % : 12.20% (As of Dec. 2023)

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What is Clover Health Investments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Clover Health Investments's Gross Profit for the three months ended in Dec. 2023 was $62 Mil. Clover Health Investments's Revenue for the three months ended in Dec. 2023 was $510 Mil. Therefore, Clover Health Investments's Gross Margin % for the quarter that ended in Dec. 2023 was 12.20%.

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

CLOV' s Gross Margin % Range Over the Past 10 Years
Min: -5.38 Med: 2.72 Max: 12.65
Current: 12.65

During the past 5 years, the highest Gross Margin % of Clover Health Investments was 12.65%. The lowest was -5.38%. And the median was 2.72%.

CLOV's Gross Margin % is ranked worse than
75% of 16 companies
in the Healthcare Plans industry
Industry Median: 23.73 vs CLOV: 12.65

Clover Health Investments had a gross margin of 12.20% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Clover Health Investments was 0.00% per year.

Clover Health Investments Gross Margin % Historical Data

The historical data trend for Clover Health Investments'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.

Clover Health Investments Gross Margin % Chart

Clover Health Investments Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

2.72

12.31

-5.38

0.65

12.65

Clover Health Investments Quarterly Data
	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												0.57	10.48	14.93	13.09	12.20

Competitive Comparison of Clover Health Investments's Gross Margin %

For the Healthcare Plans subindustry, Clover Health Investments'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.

Clover Health Investments's Gross Margin % Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Clover Health Investments's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Clover Health Investments's Gross Margin % falls into.

Clover Health Investments Gross Margin % Calculation

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

Clover Health Investments'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 )
	=	257.3	/	2033.72
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2033.72 - 1776.388)	/	2033.72
	=	12.65 %

Clover Health Investments'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 )
	=	62.3	/	510.251
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(510.251 - 447.985)	/	510.251
	=	12.20 %

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.

Clover Health Investments (NAS:CLOV) 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

Clover Health Investments had a gross margin of 12.20% for the quarter that ended in Dec. 2023 => No sustainable 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.

Clover Health Investments Gross Margin % Related Terms

Thank you for viewing the detailed overview of Clover Health Investments's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Clover Health Investments (Clover Health Investments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Clover Health Investments Corp (NAS:CLOV) » Definitions » Gross Margin %

Comparable Companies

BHG PFHO MRAI OSCR ALHC UNH ELV CI CVS HUM CNC MOH SZSE:000503 BSP:ODPV3 BSP:QUAL3 ROCO:6665 MIL:HI TSXV:NXG

Traded in Other Exchanges

7QD:Germany

Address

3401 Mallory Lane, Suite 210, Franklin, TN, USA, 37067

Website

https://www.cloverhealth.com

Clover Health Investments Corp is a healthcare technology company. It uses its proprietary technology platform to collect, structure, & analyze health & behavioral data to improve medical outcomes & lower costs for patients. The Group has two operating segments. The insurance segment provides PPO(Preferred provider Organization) & HMO(Health Maintenance Organization) plans to Medicare Advantage members in several states & seeks to improve care & lower costs which generally provide access to a wide network of primary care providers, specialists, & hospitals. Non-insurance segment includes the Company's operations relating to CMS' DC (Direct Contracting) Model, which provides options aimed at reducing expenditures & preserving or enhancing the quality of care for beneficiaries.

Executives

Karen Soares	officer: General Counsel & Secretary	3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Clover Health Investments, Corp. /de	officer: Chief Technology Officer	3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Anna U Loengard	director	C/O CLOVER HEALTH INVESTMENTS, CORP., 3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Andrew Toy	director, officer: Chief Executive Officer	C/O CLOVER HEALTH INVESTMENTS, CORP., 725 COOL SPRINGS BLVD., SUITE 320, FRANKLIN TN 37067
Scott J. Leffler	officer: Chief Financial Officer	C/O CLOVER HEALTH INVESTMENTS, CORP., 3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Brady Patrick Priest	officer: CEO of Home Care	C/O CLOVER HEALTH INVESTMENTS, CORP., FRANKLIN TN 37067
Demetrios L. Kouzoukas	director	C/O CLOVER HEALTH INVESTMENTS, CORP., 725 COOL SPRINGS BLVD., SUITE 320, FRANKLIN FL 37067
Aric R Sharp	officer: CEO of Value-Based Care	C/O CLOVER HEALTH INVESTMENTS, CORP., 3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Wai Conrad	officer: Chief Technology Officer	3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Joseph Richards Martin	officer: General Counsel	C/O LOUISIANA-PACIFIC CORPORATION, 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219
Vivek Garipalli	director, 10 percent owner, officer: Executive Chairperson	C/O CLOVER HEALTH INVESTMENTS, CORP., 725 COOL SPRINGS BLVD., SUITE 320, FRANKLIN TN 37067
Carladenise Armbrister Edwards	director	C/O CLOVER HEALTH INVESTMENTS, CORP., 3401 MALLORY LANE, SUITE 210, FRANKLIN TN 37067
Chelsea Clinton	director	C/O IAC 555 W 18TH STREET, NEW YORK NY 10011
Jamie L. Reynoso	officer: CEO of Medicare Advantage	C/O CLOVER HEALTH INVESTMENTS, CORP., 725 COOL SPRINGS BLVD., SUITE 320, FRANKLIN TN 37067
Chamath Palihapitiya	10 percent owner, other: See Remarks	THE SOCIAL-CAPITAL PARTNERSHIP, L.L.C., 506 SANTA CRUZ AVENUE, SUITE 300, MENLO PARK CA 94025