Gross Margin % is calculated as gross profit divided by its revenue. Invacare's Gross Profit for the
three
months ended in Mar. 2023 was $43.8 Mil. Invacare's Revenue for the
three
months ended in Mar. 2023 was $165.5 Mil. Therefore, Invacare's Gross Margin % for the quarter that ended in Mar. 2023 was 26.49%.
Warning Sign:
Invacare Corp gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Invacare's Gross Margin % or its related term are showing as below:
IVCRQ'
s Gross Margin % Range Over the Past 10 Years
Min: 23.65 Med: 27.47 Max: 28.83
Current: 24.29
During the past 13 years, the highestGross Margin % of Invacare was 28.83%. The lowest was 23.65%. And the median was 27.47%.
IVCRQ's Gross Margin % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 53.335
vs IVCRQ: 24.29
Invacare had a gross margin of 26.49% for the quarter that ended in Mar. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Invacare was -2.30% per year.
Invacare Gross Margin % Historical Data
The historical data trend for Invacare'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 Invacare's Gross Margin %
For the Medical Instruments & Supplies subindustry, Invacare'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.
Invacare's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Invacare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Invacare'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.
Invacare (OTCPK:IVCRQ) 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
Invacare had a gross margin of 26.49% for the quarter that ended in Mar. 2023 => Competition eroding margins
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.
Invacare Gross Margin % Related Terms
Thank you for viewing the detailed overview of Invacare's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Invacare Corp makes and distributes medical equipment used in non-acute care settings. Its products are primarily sold to home medical equipment providers, residential living operators, distributors, and government health services. The firm sells products in three categories: mobility and seating, lifestyle, and respiratory therapy. Its mobility and seating products include power wheelchairs, custom manual wheelchairs, and positioning cushions. Its lifestyle products include manual wheelchairs, crutches, walkers, and homecare beds. Its respiratory products include stationary and portable oxygen concentrators and non-delivery oxygen technology. Invacare receives the largest proportion of revenue from sales in Europe.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IVCRQ has been successfully added to your 