Medica (XPAR:MDCA) Gross Margin % : 67.37% (As of Jun. 2013)

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What is Medica Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Medica's Gross Profit for the six months ended in Jun. 2013 was €257.0 Mil. Medica's Revenue for the six months ended in Jun. 2013 was €381.5 Mil. Therefore, Medica's Gross Margin % for the quarter that ended in Jun. 2013 was 67.37%.

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

XPAR:MDCA's Gross Margin % is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 41.54
* Ranked among companies with meaningful Gross Margin % only.

Medica had a gross margin of 67.37% for the quarter that ended in Jun. 2013 => Durable competitive advantage

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

Medica Gross Margin % Historical Data

The historical data trend for Medica'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.

Medica Gross Margin % Chart

Medica Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Gross Margin %

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95.44

95.24

95.36

94.78

Medica Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13
Gross Margin %	Get a 7-Day Free Trial			95.46	95.27	66.93	121.07	67.37

Competitive Comparison of Medica's Gross Margin %

For the Medical Care Facilities subindustry, Medica'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.

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

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

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

Medica Gross Margin % Calculation

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

Medica's Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

Gross Margin % (A: Dec. 2012 )	=	Gross Profit (A: Dec. 2012 )	/	Revenue (A: Dec. 2012 )
	=	681	/	718.588
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(718.588 - 37.545)	/	718.588
	=	94.78 %

Medica's Gross Margin for the quarter that ended in Jun. 2013 is calculated as

Gross Margin % (Q: Jun. 2013 )	=	Gross Profit (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	257	/	381.499
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(381.499 - 124.502)	/	381.499
	=	67.37 %

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.

Medica (XPAR:MDCA) 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

Medica had a gross margin of 67.37% for the quarter that ended in Jun. 2013 => 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.

Medica Gross Margin % Related Terms

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