Molina Healthcare (Molina Healthcare) Gross Margin % : 12.28% (As of Mar. 2024)

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What is Molina Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Molina Healthcare's Gross Profit for the three months ended in Mar. 2024 was $1,220 Mil. Molina Healthcare's Revenue for the three months ended in Mar. 2024 was $9,931 Mil. Therefore, Molina Healthcare's Gross Margin % for the quarter that ended in Mar. 2024 was 12.28%.

Warning Sign:

Molina Healthcare Inc gross margin has been in long-term decline. The average rate of decline per year is -3.1%.

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

MOH' s Gross Margin % Range Over the Past 10 Years
Min: 9.46 Med: 12.05 Max: 14.47
Current: 12.41

During the past 13 years, the highest Gross Margin % of Molina Healthcare was 14.47%. The lowest was 9.46%. And the median was 12.05%.

MOH's Gross Margin % is ranked worse than
81.25% of 16 companies
in the Healthcare Plans industry
Industry Median: 23.73 vs MOH: 12.41

Molina Healthcare had a gross margin of 12.28% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Molina Healthcare was -3.10% per year.

Molina Healthcare Gross Margin % Historical Data

The historical data trend for Molina Healthcare'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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Molina Healthcare Gross Margin % Chart

Molina Healthcare Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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14.47

13.78

11.81

12.28

12.72

Molina Healthcare Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															13.57	13.45	12.47	11.52	12.28

Competitive Comparison of Molina Healthcare's Gross Margin %

For the Healthcare Plans subindustry, Molina Healthcare'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.

Molina Healthcare's Gross Margin % Distribution in the Healthcare Plans Industry

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

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

Molina Healthcare Gross Margin % Calculation

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

Molina Healthcare'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 )
	=	4334	/	34072
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(34072 - 29738)	/	34072
	=	12.72 %

Molina Healthcare's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	1220	/	9931
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9931 - 8711)	/	9931
	=	12.28 %

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.

Molina Healthcare (NYSE:MOH) 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

Molina Healthcare had a gross margin of 12.28% for the quarter that ended in Mar. 2024 => 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.

Molina Healthcare Gross Margin % Related Terms

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

Molina Healthcare (Molina Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Molina Healthcare Inc (NYSE:MOH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MHG:Germany MHG:Germany

Address

200 Oceangate, Suite 100, Long Beach, CA, USA, 90802

Website

https://www.molinahealthcare.com

Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). In addition to its Health Plans segment, Molina has a Medicaid,Medicare, and Marketplace segment that represent the government-funded or sponsored programs under their management information systems. Molina's Medicaid plans receive revenue on a per-member per-month basis from state government agencies, and its Medicare Advantage plans receive revenue from managed care plans that contract with the Centers for Medicaid and Medicare (CMS). Molina also provides plans through health insurance exchanges.

Executives

Ronna Romney	director
Steven J Orlando	director
Maurice Hebert	officer: Chief Accounting Officer	C/O WELLCARE HEALTH PLANS, INC., 8735 HENDERSON ROAD, TAMPA FL 33634
Marc Russo	officer: Executive Vice President	C/O WELLCARE HEALTH PLANS, INC., 8725 HENDERSON ROAD, REN. 1, TAMPA FL 33634
Jeff D. Barlow	officer: Chief Legal Officer	300 UNIVERSITY AVENUE, SUITE 100, SACRAMENTO CA 95825
Barbara L Brasier	director	C/O MEADWESTVACO CORP, ONE HIGH RIDGE PARK, STAMFORD CT 06905
Daniel Cooperman	director	DANIEL COOPERMAN, 930 CULEBRA ROAD, HILLSBOROUGH CA 94010
Dale B Wolf	director
Richard M Schapiro	director	300 UNIVERSITY AVENUE, SUITE 100, SACRAMENTO CA 95825
Joseph M Zubretsky	director, officer: President & CEO	C/O THE HANOVER INSURANCE GROUP, INC., 440 LINCOLN STREET, WORCESTER MA 01653
Mark Lowell Keim	officer: Executive Vice President	440 LINCOLN STREET, E-6, WORCESTER MA 01653
James Woys	officer: Executive Vice President	21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
Thomas L Tran	officer: Chief Financial Officer	8735 HENDERSON ROAD, TAMPA FL 33625
Stephen H Lockhart	director	C/O NATIONAL RESEARCH CORPORATION, 1245 Q STREET, LINCOLN NE 68508
Garrey Carruthers	director	5258 REDMAN RD., LAS CRUCES NM 88011