Gross Margin % is calculated as gross profit divided by its revenue. icad's Gross Profit for the
three
months ended in Dec. 2023 was $4.32 Mil. icad's Revenue for the
three
months ended in Dec. 2023 was $4.74 Mil. Therefore, icad's Gross Margin % for the quarter that ended in Dec. 2023 was 91.18%.
The historical rank and industry rank for icad's Gross Margin % or its related term are showing as below:
ICAD'
s Gross Margin % Range Over the Past 10 Years
Min: 64.68 Med: 71.99 Max: 85.37
Current: 79.79
During the past 13 years, the highestGross Margin % of icad was 85.37%. The lowest was 64.68%. And the median was 71.99%.
ICAD's Gross Margin % is ranked better than 89.7% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.575
vs ICAD: 79.79
icad had a gross margin of 91.18% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for icad was 2.50% per year.
icad Gross Margin % Historical Data
The historical data trend for icad'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 Medical Devices subindustry, icad'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.
icad's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, icad's Gross Margin % distribution charts can be found below:
* The bar in red indicates where icad'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.
icad (NAS:ICAD) 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
icad had a gross margin of 91.18% 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.
icad Gross Margin % Related Terms
Thank you for viewing the detailed overview of icad's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
icad Inc is a medical technology company providing cancer detection and therapy solutions. The Company reports in two segments: Detection and Therapy. The Detection segment include advanced image analysis and workflow solutions that enable healthcare professionals to serve patients by identifying pathologies, comprehensive range of high-performance, Artificial Intelligence and Computer-Aided Detection (CAD) systems and workflow solutions for 2D and 3D mammography, Magnetic Resonance Imaging and Computed Tomography. In the Therapy segment, the Company offers the Xoft System, an isotope-free cancer treatment platform technology. The Xoft System can be used for the treatment of early-stage breast cancer, endometrial cancer, cervical cancer and nonmelanoma skin cancer.
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