Gross Margin % is calculated as gross profit divided by its revenue. Avinger's Gross Profit for the
three
months ended in Mar. 2024 was $0.34 Mil. Avinger's Revenue for the
three
months ended in Mar. 2024 was $1.86 Mil. Therefore, Avinger's Gross Margin % for the quarter that ended in Mar. 2024 was 18.45%.
The historical rank and industry rank for Avinger's Gross Margin % or its related term are showing as below:
AVGR'
s Gross Margin % Range Over the Past 10 Years
Min: -30.88 Med: 30.64 Max: 41.92
Current: 22.43
During the past 12 years, the highestGross Margin % of Avinger was 41.92%. The lowest was -30.88%. And the median was 30.64%.
AVGR's Gross Margin % is ranked worse than 86.14% of 801
companies
in the Medical Devices & Instruments industry
Industry Median: 52.9
vs AVGR: 22.43
Avinger had a gross margin of 18.45% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Avinger was 6.50% per year.
Avinger Gross Margin % Historical Data
The historical data trend for Avinger'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.
Competitive Comparison of Avinger's Gross Margin %
For the Medical Instruments & Supplies subindustry, Avinger'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.
Avinger's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Avinger's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avinger'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.
Avinger (NAS:AVGR) 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
Avinger had a gross margin of 18.45% for the quarter that ended in Mar. 2024 => 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.
Avinger Gross Margin % Related Terms
Thank you for viewing the detailed overview of Avinger's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Avinger Inc is a United States-based medical device company. It is engaged in designing, manufacturing and selling image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease (PAD). The products offered by the firm include Lightbox imaging console, the Ocelot family of catheters, which are designed to allow physicians to penetrate a total blockage in an artery, known as a chronic total occlusion (CTO) and Pantheris, image-guided atherectomy device which is designed to allow physicians to precisely remove arterial plaque in PAD patients. It manufactures and sells products in the United States and internationally of which it generates the majority of the revenue from the sales made in the United States.
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