Gross Margin % is calculated as gross profit divided by its revenue. Veru's Gross Profit for the
three
months ended in Dec. 2023 was $1.15 Mil. Veru's Revenue for the
three
months ended in Dec. 2023 was $2.14 Mil. Therefore, Veru's Gross Margin % for the quarter that ended in Dec. 2023 was 53.71%.
Warning Sign:
Veru Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Veru's Gross Margin % or its related term are showing as below:
VERU'
s Gross Margin % Range Over the Past 10 Years
Min: 46.43 Med: 59.26 Max: 78.24
Current: 50.31
During the past 13 years, the highestGross Margin % of Veru was 78.24%. The lowest was 46.43%. And the median was 59.26%.
VERU's Gross Margin % is ranked worse than 60.08% of 739
companies
in the Biotechnology industry
Industry Median: 59.43
vs VERU: 50.31
Veru had a gross margin of 53.71% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Veru was -1.10% per year.
Veru Gross Margin % Historical Data
The historical data trend for Veru'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.
For the Biotechnology subindustry, Veru'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.
Veru's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Veru's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Veru'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.
Veru (NAS:VERU) 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
Veru had a gross margin of 53.71% 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.
Veru Gross Margin % Related Terms
Thank you for viewing the detailed overview of Veru's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Veru Inc is a biopharmaceutical company with a drug development program for the treatment of metabolic diseases, oncology and acute respiratory distress syndrome (ARDS). The company is also in the late stage development of certain drugs for management of breast and prostate cancers. It also has a sexual health program which includes two products, ENTADFI, for the treatment of benign prostatic hyperplasia (BPH) and the FC2 Female Condom (Internal Condom). The company operates in single segment and generates revenue from USA which is the key revenue generating market, South Africa and other regions.
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