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Envision Healthcare (Envision Healthcare) Gross Margin % : 25.70% (As of Jun. 2018)


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What is Envision Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Envision Healthcare's Gross Profit for the three months ended in Jun. 2018 was $532.70 Mil. Envision Healthcare's Revenue for the three months ended in Jun. 2018 was $2,072.80 Mil. Therefore, Envision Healthcare's Gross Margin % for the quarter that ended in Jun. 2018 was 25.70%.

Warning Sign:

Envision Healthcare Corp gross margin has been in long term decline. The average rate of decline per year is -14%.


The historical rank and industry rank for Envision Healthcare's Gross Margin % or its related term are showing as below:

EVHCp.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 24.35   Med: 54.39   Max: 59.35
Current: 24.35


During the past 13 years, the highest Gross Margin % of Envision Healthcare was 59.35%. The lowest was 24.35%. And the median was 54.39%.

EVHCp.PFD's Gross Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 41.53 vs EVHCp.PFD: 24.35

Envision Healthcare had a gross margin of 25.70% for the quarter that ended in Jun. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Envision Healthcare was -14.00% per year.


Envision Healthcare Gross Margin % Historical Data

The historical data trend for Envision Healthcare'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.

Envision Healthcare Gross Margin % Chart

Envision Healthcare Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 54.53 46.74 40.45 35.42 25.18

Envision Healthcare Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.44 25.74 22.66 23.29 25.70

Competitive Comparison of Envision Healthcare's Gross Margin %

For the Medical Care Facilities subindustry, Envision Healthcare'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.


Envision Healthcare's Gross Margin % Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Envision Healthcare's Gross Margin % falls into.



Envision Healthcare Gross Margin % Calculation

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

Envision Healthcare's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=1969.2 / 7819.3
=(Revenue - Cost of Goods Sold) / Revenue
=(7819.3 - 5850.1) / 7819.3
=25.18 %

Envision Healthcare's Gross Margin for the quarter that ended in Jun. 2018 is calculated as


Gross Margin % (Q: Jun. 2018 )=Gross Profit (Q: Jun. 2018 ) / Revenue (Q: Jun. 2018 )
=532.7 / 2072.8
=(Revenue - Cost of Goods Sold) / Revenue
=(2072.8 - 1540.1) / 2072.8
=25.70 %

* 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.


Envision Healthcare  (NYSE:EVHCp.PFD) 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

Envision Healthcare had a gross margin of 25.70% for the quarter that ended in Jun. 2018 => Competition eroding margins


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.


Envision Healthcare Gross Margin % Related Terms

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Envision Healthcare (Envision Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
AmSurg acquires and develops practice-based ambulatory surgery centers in partnership with physician groups. The company has a majority interest in 264 surgery centers in 35 states. AmSurg centers are typically single-specialty and perform procedures in the areas of gastroenterology, ophthalmology, and orthopedics.