Gross Margin % is calculated as gross profit divided by its revenue. Akumin's Gross Profit for the
three
months ended in Sep. 2023 was $22.6 Mil. Akumin's Revenue for the
three
months ended in Sep. 2023 was $180.6 Mil. Therefore, Akumin's Gross Margin % for the quarter that ended in Sep. 2023 was 12.50%.
The historical rank and industry rank for Akumin's Gross Margin % or its related term are showing as below:
AKUMQ'
s Gross Margin % Range Over the Past 10 Years
Min: 12.54 Med: 16.19 Max: 22.19
Current: 16.27
During the past 8 years, the highestGross Margin % of Akumin was 22.19%. The lowest was 12.54%. And the median was 16.19%.
AKUMQ's Gross Margin % is not ranked
in the Medical Diagnostics & Research industry.
Industry Median: 45.52
vs AKUMQ: 16.27
Akumin had a gross margin of 12.50% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Akumin was -0.20% per year.
Akumin Gross Margin % Historical Data
The historical data trend for Akumin'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.
For the Diagnostics & Research subindustry, Akumin'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.
Akumin's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Akumin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Akumin'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.
Akumin (OTCPK:AKUMQ) 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
Akumin had a gross margin of 12.50% for the quarter that ended in Sep. 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.
Akumin Gross Margin % Related Terms
Thank you for viewing the detailed overview of Akumin's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Akumin Inc is a Canada-based company that provides freestanding, fixed-site outpatient diagnostic imaging services in the United States. The company operates in Florida, Pennsylvania, Delaware, Texas, Illinois, and Kansas. It offers physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. The company's imaging procedures include MRI, CT, positron emission tomography, ultrasound, X-ray, mammography, and other diagnostic or interventional radiology procedures. It operates in two reportable business segments: radiology and oncology. The radiology segment acconts for majority revenue.
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