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Allergan (FRA:AG4) Gross Margin % : 89.06% (As of Dec. 2014)


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What is Allergan Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Allergan's Gross Profit for the three months ended in Dec. 2014 was €1,380 Mil. Allergan's Revenue for the three months ended in Dec. 2014 was €1,549 Mil. Therefore, Allergan's Gross Margin % for the quarter that ended in Dec. 2014 was 89.06%.


The historical rank and industry rank for Allergan's Gross Margin % or its related term are showing as below:


FRA:AG4's Gross Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 47.04
* Ranked among companies with meaningful Gross Margin % only.

Allergan had a gross margin of 89.06% for the quarter that ended in Dec. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Allergan was 0.00% per year.


Allergan Gross Margin % Historical Data

The historical data trend for Allergan'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.

* Premium members only.

Allergan Gross Margin % Chart

Allergan Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 85.32 86.18 86.70 87.37 88.36

Allergan Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 87.85 87.58 88.08 88.63 89.06

Competitive Comparison of Allergan's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Allergan'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.


Allergan's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Allergan's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Allergan's Gross Margin % falls into.



Allergan Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Allergan's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=5186.8 / 5869.937
=(Revenue - Cost of Goods Sold) / Revenue
=(5869.937 - 683.187) / 5869.937
=88.36 %

Allergan's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=1379.8 / 1549.415
=(Revenue - Cost of Goods Sold) / Revenue
=(1549.415 - 169.58) / 1549.415
=89.06 %

* 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.


Allergan  (FRA:AG4) 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

Allergan had a gross margin of 89.06% for the quarter that ended in Dec. 2014 => 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.


Allergan Gross Margin % Related Terms

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Allergan (FRA:AG4) Business Description

Traded in Other Exchanges
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Address
Website
Allergan Inc incorporated in Delaware in 1977. It is a multi-specialty health care company. The Company is engaged in the developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products that enable people to live life to its full potential - to see more clearly, move more freely and express themselves more fully. It offers products for the ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, urological and other specialty markets in more than 100 countries around the world. It is also engaged in specialty pharmaceutical, biologic and medical device research and development. The Company's business segments are specialty pharmaceuticals and medical devices. The specialty pharmaceuticals segment produces pharmaceutical products, including: ophthalmic products for dry eye, glaucoma, inflammation, infection, allergy and retinal disease; Botox for certain therapeutic and aesthetic indications; skin care products for acne, psoriasis, eyelash growth and other prescription and over-the-counter skin care products; and urologics products. The medical devices segment produces medical devices, including: breast implants for augmentation, revision and reconstructive surgery and tissue expanders; and facial aesthetics products. The Company sells its products directly through its own sales subsidiaries in approximately 40 countries and, supplemented by independent distributors, in over 100 countries. Its products are sold to drug wholesalers, independent and chain drug stores, pharmacies, commercial optical chains, opticians, mass merchandisers, food stores, hospitals, group purchasing organizations, integrated direct hospital networks, ambulatory surgery centers, government purchasing agencies and medical practitioners. The Company also utilize distributors for its products in smaller international markets. The Company's competitors include Akorn, Inc., Alcon Laboratories, Inc./Novartis AG, Abbott Laboratories, Alimera Sciences, Inc., Bausch & Lomb, Inc., a division of Valeant, Genentech/Hoffmann La Roche AG, Merck & Co., Pfizer Inc., Regeneron Pharmaceuticals, Inc. and Santen Seiyaku. Mentor and Sientra, Inc., or Sientra, a partner of Silimed, LifeCell Corporation, CR Bard Inc. The Company's operations are subject to federal, state, local and foreign environmental laws and regulations, including the U.S. Occupational Safety and Health Act, the U.S. Toxic Substances Control Act, the U.S. Resource Conservation and Recovery Act, Superfund Amendments and Reauthorization Act, Comprehensive Environmental Response, Compensation and Liability Act and other current and potential future federal, state or local regulations.

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