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Vapotherm (Vapotherm) Gross Margin % : 46.61% (As of Dec. 2023)


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What is Vapotherm Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vapotherm's Gross Profit for the three months ended in Dec. 2023 was $9.20 Mil. Vapotherm's Revenue for the three months ended in Dec. 2023 was $19.73 Mil. Therefore, Vapotherm's Gross Margin % for the quarter that ended in Dec. 2023 was 46.61%.

Warning Sign:

Vapotherm Inc gross margin has been in long-term decline. The average rate of decline per year is -4.2%.


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

VAPO' s Gross Margin % Range Over the Past 10 Years
Min: 25.81   Med: 40.39   Max: 50.14
Current: 41.19


During the past 8 years, the highest Gross Margin % of Vapotherm was 50.14%. The lowest was 25.81%. And the median was 40.39%.

VAPO's Gross Margin % is ranked worse than
66.83% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.135 vs VAPO: 41.19

Vapotherm had a gross margin of 46.61% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vapotherm was -4.20% per year.


Vapotherm Gross Margin % Historical Data

The historical data trend for Vapotherm'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.

Vapotherm Gross Margin % Chart

Vapotherm Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 44.30 50.14 46.95 25.81 41.19

Vapotherm Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.45 35.03 42.78 39.65 46.61

Competitive Comparison of Vapotherm's Gross Margin %

For the Medical Devices subindustry, Vapotherm'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.


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

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

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



Vapotherm Gross Margin % Calculation

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

Vapotherm'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 )
=28.3 / 68.669
=(Revenue - Cost of Goods Sold) / Revenue
=(68.669 - 40.386) / 68.669
=41.19 %

Vapotherm'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 )
=9.2 / 19.734
=(Revenue - Cost of Goods Sold) / Revenue
=(19.734 - 10.536) / 19.734
=46.61 %

* 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.


Vapotherm  (OTCPK:VAPO) 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

Vapotherm had a gross margin of 46.61% for the quarter that ended in Dec. 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.


Vapotherm Gross Margin % Related Terms

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


Vapotherm (Vapotherm) Business Description

Traded in Other Exchanges
N/A
Address
100 Domain Drive, Exeter, NH, USA, 03833
Vapotherm Inc is a medical technology company based in the United States. It is mainly engaged in the development and commercialization of its proprietary Hi-VNI technology products that are used to treat patients of all ages suffering from respiratory distress. The company offers four versions of its Precision Flow systems: Precision Flow Hi-VNI, Precision Flow Plus, Precision Flow Classic, and Precision Flow Heliox. It generates revenue primarily from sales of proprietary Precision Flow systems to hospitals through a direct sales organization in the United States and distributors in select countries outside of the United States.
Executives
Joseph Army director, officer: President and CEO ONE WASHINGTON CENTER, SUITE 400, DOVER NH 03820
Anthony L. Arnerich director 100 DOMAIN DRIVE, EXETER NH 03833
Dorota Mckay officer: Chief Accounting Officer 100 DOMAIN DRIVE, EXETER NH 03833
John Landry officer: See Remarks 100 DOMAIN DRIVE, EXETER NH 03833
James W Liken director 5 DEER SPRING LANE, PITTSBURGH PA 15211
Lance A Berry director 5677 AIRLINE ROAD, ARLINGTON TN 38002
Elizabeth H Weatherman director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Richard R Barrera 10 percent owner 767 THIRD AVENUE, 29TH FLOOR, NEW YORK NY 10017
Roystone Capital Holdings Llc 10 percent owner 767 THIRD AVENUE, 29TH FLOOR, NEW YORK NY 10017
Roystone Capital Management Lp 10 percent owner 780 THIRD AVENUE, 41ST FLOOR, NEW YORK NY 10017
Brian Lawrence officer: SVP & Chief Technology Officer 100 DOMAIN DRIVE, EXETER NH 03833
Prescott General Partners Llc 10 percent owner, other: Member of Section 13(d) Group 2200 BUTTS ROAD, SUITE 320, BOCA RATON FL 33431
Gregoire Ramade officer: Vice President, International 100 DOMAIN DRIVE, EXETER NH 03833
Joel F. Dube officer: Chief Accounting Officer 100 DOMAIN DRIVE, EXETER NH 03833
Donald J Spence director C/O OAKMONT ACQUISITION CORP., 33 BLOOMFIELD HILLS PARKWAY, SUITE 240, BLOOMFIELD HILLS MI 48304