Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', PRCT's gross profit margin was 46.0%, showing profitability after production and operational costs. Industry average for Medical/Dental Instruments in '2021' stood at 51.8%.
• In '2022', PRCT's gross profit margin was 49.4%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2022' stood at 30.5%. Industry average declined by 21.3% from previous year.
• In '2023', PRCT's gross profit margin was 52.2%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2023' stood at 45.9%. Industry average increased by 15.4% compared to previous year.
• In '2024', PRCT's gross profit margin was 61.1%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2024' stood at 54.7%. Industry average increased by 8.8% compared to previous year.
Overall, PRCT's gross profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.