GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Volcano Corp (FRA:VQY) » Definitions » Gross Margin %

Volcano (FRA:VQY) Gross Margin % : 61.73% (As of Sep. 2014)


View and export this data going back to . Start your Free Trial

What is Volcano Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Volcano's Gross Profit for the three months ended in Sep. 2014 was €46.7 Mil. Volcano's Revenue for the three months ended in Sep. 2014 was €75.6 Mil. Therefore, Volcano's Gross Margin % for the quarter that ended in Sep. 2014 was 61.73%.


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


FRA:VQY's Gross Margin % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 52.98
* Ranked among companies with meaningful Gross Margin % only.

Volcano had a gross margin of 61.73% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Volcano was 0.00% per year.


Volcano Gross Margin % Historical Data

The historical data trend for Volcano'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.

Volcano Gross Margin % Chart

Volcano Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.85 62.99 66.66 66.24 63.60

Volcano Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 65.08 60.62 62.89 63.25 61.73

Competitive Comparison of Volcano's Gross Margin %

For the Medical Devices subindustry, Volcano'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.


Volcano's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Volcano's Gross Margin % distribution charts can be found below:

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



Volcano Gross Margin % Calculation

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

Volcano's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=182.8 / 287.385
=(Revenue - Cost of Goods Sold) / Revenue
=(287.385 - 104.611) / 287.385
=63.60 %

Volcano's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=46.7 / 75.627
=(Revenue - Cost of Goods Sold) / Revenue
=(75.627 - 28.939) / 75.627
=61.73 %

* 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.


Volcano  (FRA:VQY) 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

Volcano had a gross margin of 61.73% for the quarter that ended in Sep. 2014 => 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.


Volcano Gross Margin % Related Terms

Thank you for viewing the detailed overview of Volcano's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Volcano (FRA:VQY) Business Description

Traded in Other Exchanges
N/A
Address
Volcano Corp incorporated in the state of Delaware in January 2000. The Company completed its initial public offering on June 15, 2006. The Company designs, develops, manufactures and commercializes a broad suite of precision guided therapy tools including intravascular ultrasound, or IVUS, and fractional flow reserve, or FFR, products. The IVUS products include single-procedure disposable phased array and rotational IVUS imaging catheters, and additional functionality options such as ChromaFlo stent apposition analysis. FFR offerings can be accessed through its multi-modality platforms, and it also provide FFR-only consoles. Its products include: IVUS Products, Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. ChromaFlo stent apposition analysis technology uses sequential IVUS frames to differentiate circulating blood from stationary or anchored tissue. SyncVision, Sync-Rx Ltd, or Sync-Rx, an Israel-based company that develops advanced software applications designed to optimize and facilitate trans-catheter cardiovascular interventions using automated online image processing. FFR products consist of pressure and flow consoles and single-procedure disposable pressure and flow guide wires. The Company's primary imaging competitors globally are Boston Scientific, Inc., or Boston Scientific, with its IVUS offering and St. Jude Medical, Inc., or St. Jude with its OCT offering. In Japan, it also competes with Terumo Corporation, which offers both IVUS and OCT. In the FFR market, its primary competitor is St. Jude. Because of the size of the vascular market opportunities, competitors and potential competitors have dedicated and will continue to dedicate significant resources to aggressively promote their products. It has registered and common law trademarks in the U.S. and elsewhere in the world including, but not limited to, Aim, Axsun, Bi-Trieval, Centriq, ChromaFlo, ComboMap, ComboWire, Core, Crux, Crux Biomedical, Define, Eagle Eye, ETNA, FACT, FloMap, FloWire, Ginko, GlyDx, Hi-Q, iFR, In-Line Digital, Instant Wave-Free Ratio, Intentio, Octave, pcFM, Precision Guided Therapy, PreView, PrimeWire, PrimeWire Prestige, ReFlow, Revolution, SlyDx, s5i, SmartMap, SpinVision, Sync-Rx, Trak Back, Valet, Verrata, VH, VIBE, Virtual Histology, Visions, Volcano, Wavewire, Xtract and Zuum. The Company's medical device products are subject to extensive and rigorous regulation by the FDA, as well as other federal and state regulatory bodies in the U.S. and comparable authorities in other countries.

Volcano (FRA:VQY) Headlines

No Headlines