Gross Margin % is calculated as gross profit divided by its revenue. Encision's Gross Profit for the
three
months ended in Dec. 2023 was $0.73 Mil. Encision's Revenue for the
three
months ended in Dec. 2023 was $1.58 Mil. Therefore, Encision's Gross Margin % for the quarter that ended in Dec. 2023 was 45.95%.
Warning Sign:
Encision Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Encision's Gross Margin % or its related term are showing as below:
ECIA'
s Gross Margin % Range Over the Past 10 Years
Min: 41.54 Med: 50.73 Max: 57.2
Current: 50.55
During the past 13 years, the highestGross Margin % of Encision was 57.20%. The lowest was 41.54%. And the median was 50.73%.
ECIA's Gross Margin % is ranked worse than 53.43% of 801
companies
in the Medical Devices & Instruments industry
Industry Median: 52.83
vs ECIA: 50.55
Encision had a gross margin of 45.95% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Encision was -1.20% per year.
Encision Gross Margin % Historical Data
The historical data trend for Encision'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 Encision's Gross Margin %
For the Medical Instruments & Supplies subindustry, Encision'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.
Encision's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Encision's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Encision'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.
Encision (OTCPK:ECIA) 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
Encision had a gross margin of 45.95% 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.
Encision Gross Margin % Related Terms
Thank you for viewing the detailed overview of Encision's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Encision Inc is a medical device company. The company develops and markets technology that provides unprecedented outcomes and patient safety in minimally-invasive surgery. The company has established and developed AEM (Active Electrode Monitoring) technology and surgical instruments which provides surgeons with the desired tissue effects of cutting and coagulating tissue in laparoscopic procedures while preventing stray electrosurgical energy that can cause complications and even death. The segments of the company are Product and Service. Product designs develops, manufactures and markets patented surgical instruments. Service performs electrical engineering activities for external entities.
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