The historical rank and industry rank for Fortrea Holdings's Gross Margin % or its related term are showing as below:
FTRE'
s Gross Margin % Range Over the Past 10 Years
Min: 16.63 Med: 19.37 Max: 20.95
Current: 16.63
During the past 4 years, the highestGross Margin % of Fortrea Holdings was 20.95%. The lowest was 16.63%. And the median was 19.37%.
FTRE's Gross Margin % is ranked worse than 85.29% of 741
companies
in the Biotechnology industry
Industry Median: 59.43
vs FTRE: 16.63
Fortrea Holdings had a gross margin of 15.44% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fortrea Holdings was 0.00% per year.
Fortrea Holdings Gross Margin % Historical Data
The historical data trend for Fortrea Holdings'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.
Competitive Comparison of Fortrea Holdings's Gross Margin %
For the Biotechnology subindustry, Fortrea Holdings'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.
Fortrea Holdings's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Fortrea Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fortrea Holdings'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.
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
Fortrea Holdings had a gross margin of 15.44% 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.
Fortrea Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Fortrea Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fortrea Holdings (Fortrea Holdings) Business Description
Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.
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