PharmChem (PharmChem) Gross Margin % : 66.18% (As of Sep. 2023)

PharmChem Gross Margin % Chart

PharmChem Annual Data
	Trend	Dec93	Dec94	Dec95	Dec96	Dec97	Dec98	Dec99	Dec00	Dec01	Dec02
Gross Margin %		Get a 7-Day Free Trial					30.79	29.48	26.46	11.04	23.51

PharmChem Quarterly Data
	Jun99	Sep99	Dec99	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Sep22	Sep23
Gross Margin %	Get a 7-Day Free Trial															19.10	22.06	23.97	65.29	66.18

Competitive Comparison of PharmChem's Gross Margin %

For the Diagnostics & Research subindustry, PharmChem'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.

PharmChem's Gross Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, PharmChem's Gross Margin % distribution charts can be found below:

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

PharmChem Gross Margin % Calculation

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

PharmChem's Gross Margin for the fiscal year that ended in Dec. 2002 is calculated as

PharmChem's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

* 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.

PharmChem  (OTCPK:PCHM) 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

PharmChem had a gross margin of 66.18% for the quarter that ended in Sep. 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.

PharmChem Gross Margin % Related Terms

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PharmChem (PharmChem) Business Description