Profound Medical (TSX:PRN) Gross Margin % : 66.46% (As of Mar. 2024)

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What is Profound Medical Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Profound Medical's Gross Profit for the three months ended in Mar. 2024 was C$1.72 Mil. Profound Medical's Revenue for the three months ended in Mar. 2024 was C$2.59 Mil. Therefore, Profound Medical's Gross Margin % for the quarter that ended in Mar. 2024 was 66.46%.

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

TSX:PRN' s Gross Margin % Range Over the Past 10 Years
Min: 31.66 Med: 45.22 Max: 61.24
Current: 61.24

During the past 10 years, the highest Gross Margin % of Profound Medical was 61.24%. The lowest was 31.66%. And the median was 45.22%.

TSX:PRN's Gross Margin % is ranked better than
62.42% of 801 companies
in the Medical Devices & Instruments industry
Industry Median: 52.83 vs TSX:PRN: 61.24

Profound Medical had a gross margin of 66.46% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Profound Medical was 7.30% per year.

Profound Medical Gross Margin % Historical Data

The historical data trend for Profound Medical'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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Profound Medical Gross Margin % Chart

Profound Medical Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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57.25

47.56

42.96

45.22

60.87

Profound Medical 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															65.23	65.55	61.33	52.73	66.46

Competitive Comparison of Profound Medical's Gross Margin %

For the Medical Devices subindustry, Profound Medical'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.

Profound Medical's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Profound Medical's Gross Margin % distribution charts can be found below:

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

Profound Medical Gross Margin % Calculation

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

Profound Medical'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 )
	=	5.9	/	9.658
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9.658 - 3.779)	/	9.658
	=	60.87 %

Profound Medical'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 )
	=	1.7	/	2.585
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.585 - 0.867)	/	2.585
	=	66.46 %

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.

Profound Medical (TSX:PRN) 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

Profound Medical had a gross margin of 66.46% for the quarter that ended in Mar. 2024 => 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.

Profound Medical Gross Margin % Related Terms

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Profound Medical (TSX:PRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Profound Medical Corp (TSX:PRN) » Definitions » Gross Margin %

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PROF:USA

Address

2400 Skymark Avenue, Unit 6, Mississauga, ON, CAN, L4W 5K5

Website

https://www.profoundmedical.com

Profound Medical Corp is a commercial-stage medical device company focused on the development and marketing of customizable, incision-free therapeutic systems for the image-guided ablation of diseased tissue utilizing its platform technologies and leveraging the healthcare system's existing imaging infrastructure. The company's product TULSA-PRO system combines real-time MRI, robotically driven transurethral sweeping-action thermal ultrasound with closed-loop temperature feedback control for the ablation of prostate tissue. The product is comprised of one-time-use devices and durable equipment that are used in conjunction with a customer's existing MRI scanner.

Executives

Abbey Klair Goodman

Senior Officer