Gross Margin % is calculated as gross profit divided by its revenue. Zai Lab's Gross Profit for the
three
months ended in Jun. 2024 was $65.3 Mil. Zai Lab's Revenue for the
three
months ended in Jun. 2024 was $100.5 Mil. Therefore, Zai Lab's Gross Margin % for the quarter that ended in Jun. 2024 was 64.94%.
Warning Sign:
Zai Lab Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Zai Lab's Gross Margin % or its related term are showing as below:
ZLAB'
s Gross Margin % Range Over the Past 10 Years
Min: 62.95 Med: 65.7 Max: 71.13
Current: 62.95
During the past 9 years, the highestGross Margin % of Zai Lab was 71.13%. The lowest was 62.95%. And the median was 65.70%.
ZLAB's Gross Margin % is ranked better than 52.55% of 744
companies
in the Biotechnology industry
Industry Median: 60.605
vs ZLAB: 62.95
Zai Lab had a gross margin of 64.94% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zai Lab was -1.30% per year.
Zai Lab Gross Margin % Historical Data
The historical data trend for Zai Lab'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 Zai Lab's Gross Margin %
For the Biotechnology subindustry, Zai Lab'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.
Zai Lab's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zai Lab'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.
Zai Lab (NAS:ZLAB) 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
Zai Lab had a gross margin of 64.94% for the quarter that ended in Jun. 2024 => 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.
Zai Lab Gross Margin % Related Terms
Thank you for viewing the detailed overview of Zai Lab's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. The pipeline of proprietary drug candidates of the company includes ZL-2306 for treatments across multiple solid tumor types including ovarian and certain types of breast and lung cancers; ZL-2401 which is an antibiotic in a new class of tetracycline derivatives; and ZL-2301 is an oral, small molecule which targets HCC.
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