Gross Margin % is calculated as gross profit divided by its revenue. United Therapeutics's Gross Profit for the
three
months ended in Dec. 2023 was $544 Mil. United Therapeutics's Revenue for the
three
months ended in Dec. 2023 was $615 Mil. Therefore, United Therapeutics's Gross Margin % for the quarter that ended in Dec. 2023 was 88.45%.
The historical rank and industry rank for United Therapeutics's Gross Margin % or its related term are showing as below:
UTHR'
s Gross Margin % Range Over the Past 10 Years
Min: 87.79 Med: 92.44 Max: 95.45
Current: 88.94
During the past 13 years, the highestGross Margin % of United Therapeutics was 95.45%. The lowest was 87.79%. And the median was 92.44%.
UTHR's Gross Margin % is ranked better than 83.81% of 735
companies
in the Biotechnology industry
Industry Median: 59.4
vs UTHR: 88.94
United Therapeutics had a gross margin of 88.45% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for United Therapeutics was 0.20% per year.
United Therapeutics Gross Margin % Historical Data
The historical data trend for United Therapeutics'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.
United Therapeutics Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
91.88
92.71
92.73
92.17
88.94
United Therapeutics Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
88.04
89.68
89.25
88.50
88.45
Competitive Comparison
For the Biotechnology subindustry, United Therapeutics'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.
United Therapeutics Gross Margin % Distribution
For the Biotechnology industry and Healthcare sector, United Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Therapeutics'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.
United Therapeutics (NAS:UTHR) 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
United Therapeutics had a gross margin of 88.45% 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.
United Therapeutics Gross Margin % Related Terms
Thank you for viewing the detailed overview of United Therapeutics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
United Therapeutics (United Therapeutics) Business Description
United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
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