Globus Medical Inc gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Globus Medical's Gross Margin % or its related term are showing as below:
GMED'
s Gross Margin % Range Over the Past 10 Years
Min: 65.05 Med: 75.92 Max: 77.64
Current: 65.05
During the past 13 years, the highestGross Margin % of Globus Medical was 77.64%. The lowest was 65.05%. And the median was 75.92%.
GMED's Gross Margin % is ranked better than 69.56% of 795
companies
in the Medical Devices & Instruments industry
Industry Median: 53.37
vs GMED: 65.05
Globus Medical had a gross margin of 56.94% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Globus Medical was -2.70% per year.
Globus Medical Gross Margin % Historical Data
The historical data trend for Globus Medical'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 Globus Medical's Gross Margin %
For the Medical Devices subindustry, Globus Medical'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.
Globus Medical's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Globus Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Globus Medical'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.
Globus Medical (NYSE:GMED) 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
Globus Medical had a gross margin of 56.94% 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.
Globus Medical Gross Margin % Related Terms
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Globus Medical (Globus Medical) Business Description
Globus Medical Inc is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The firm's products are organized into two categories: musculoskeletal solutions, which include medical devices and instruments used mostly for spinal and orthopedic procedures, and enabling technologies, which include advanced computer systems developed for enhancing surgical capabilities. The vast majority of the company's revenue is generated from musculoskeletal solutions products, and more than half of the revenue is earned in the United States.
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