RMDNEUTRAL

Gross Margin

62.2%

Higher than 36% of Healthcare sector peers

Updated 52h ago

Sector Performance

36th percentile

RMD

62.2%

Sector Median

69.8%

Sector Avg

-24.1%

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Deep Analysis

ResMed’s gross margin of 62.2% means that for every dollar of revenue, the company retains 62.2 cents after deducting the direct costs of producing its medical devices and cloud-based software.

This places ResMed below the healthcare sector median of 69.4%, at the 38th percentile among its peers. The year-over-year change and quarter-over-quarter change are both listed as N/A, and no trend data is available for the last eight quarters, leaving the direction of the metric unknown. With a below-median gross margin and no trend to assess, investors face uncertainty about whether margin pressure or improvement is occurring, creating a moderate risk that cost structures may not align with peers. This metric neither supports nor contradicts the overall NEUTRAL verdict, as the static 62.2% level is unremarkable given the sector comparison, and the absence of trend data prevents any clear signal.

Frequently Asked Questions

What does the Gross Margin tell investors about RMD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RMD's Gross Margin compare to its sector?

RMD's Gross Margin of 62.2% compares to a Healthcare sector median of 69.8%, placing it in the 36th percentile.

Who are RMD's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BMY (70.2%), AMGN (68.2%), TDOC (67.8%), TECH (66.9%), BAYRY (61.0%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.