Rede d oro Luiz (BSP:RDOR3) Gross Margin % : 17.95% (As of Dec. 2023)

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What is Rede d oro Luiz Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rede d oro Luiz's Gross Profit for the three months ended in Dec. 2023 was R$2,064 Mil. Rede d oro Luiz's Revenue for the three months ended in Dec. 2023 was R$11,500 Mil. Therefore, Rede d oro Luiz's Gross Margin % for the quarter that ended in Dec. 2023 was 17.95%.

Warning Sign:

Rede d or Sao Luiz SA gross margin has been in long-term decline. The average rate of decline per year is -6.8%.

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

BSP:RDOR3' s Gross Margin % Range Over the Past 10 Years
Min: 16.28 Med: 23.12 Max: 26.13
Current: 16.28

During the past 6 years, the highest Gross Margin % of Rede d oro Luiz was 26.13%. The lowest was 16.28%. And the median was 23.12%.

BSP:RDOR3's Gross Margin % is ranked worse than
87.03% of 609 companies
in the Healthcare Providers & Services industry
Industry Median: 41.53 vs BSP:RDOR3: 16.28

Rede d oro Luiz had a gross margin of 17.95% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rede d oro Luiz was -6.80% per year.

Rede d oro Luiz Gross Margin % Historical Data

The historical data trend for Rede d oro Luiz'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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Rede d oro Luiz Gross Margin % Chart

Rede d oro Luiz Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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26.13

18.30

23.60

22.63

16.28

Rede d oro Luiz 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															21.31	14.33	16.10	16.69	17.95

Competitive Comparison of Rede d oro Luiz's Gross Margin %

For the Medical Care Facilities subindustry, Rede d oro Luiz'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.

Rede d oro Luiz's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Rede d oro Luiz's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rede d oro Luiz's Gross Margin % falls into.

Rede d oro Luiz Gross Margin % Calculation

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

Rede d oro Luiz'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 )
	=	7571.5	/	46508.558
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(46508.558 - 38937.076)	/	46508.558
	=	16.28 %

Rede d oro Luiz'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 )
	=	2064.4	/	11499.541
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11499.541 - 9435.174)	/	11499.541
	=	17.95 %

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.

Rede d oro Luiz (BSP:RDOR3) 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

Rede d oro Luiz had a gross margin of 17.95% for the quarter that ended in Dec. 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.

Rede d oro Luiz Gross Margin % Related Terms

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Rede d oro Luiz (BSP:RDOR3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Rede d or Sao Luiz SA (BSP:RDOR3) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Street Francisco Marengo, No. 1312, Sao Paulo, SP, BRA, 03313-000

Website

https://www.rededorsaoluiz.com.br

Rede d or Sao Luiz SA is a provider of integrated healthcare services. The company offers medical and hospital care services in the areas of women healthcare, oncology, dermatology, gastroenterology, neurology, psychology, urology, reproductive medicine, and others.

Rede d oro Luiz (BSP:RDOR3) Headlines

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