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Embecta (FRA:JX7) Gross Margin % : 60.75% (As of Sep. 2024)


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What is Embecta Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Embecta's Gross Profit for the three months ended in Sep. 2024 was €157 Mil. Embecta's Revenue for the three months ended in Sep. 2024 was €258 Mil. Therefore, Embecta's Gross Margin % for the quarter that ended in Sep. 2024 was 60.75%.

Warning Sign:

Embecta Corp gross margin has been in long-term decline. The average rate of decline per year is -1.5%.


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

FRA:JX7' s Gross Margin % Range Over the Past 10 Years
Min: 65.46   Med: 68.65   Max: 70.87
Current: 65.46


During the past 6 years, the highest Gross Margin % of Embecta was 70.87%. The lowest was 65.46%. And the median was 68.65%.

FRA:JX7's Gross Margin % is ranked better than
70.43% of 805 companies
in the Medical Devices & Instruments industry
Industry Median: 51.89 vs FRA:JX7: 65.46

Embecta had a gross margin of 60.75% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Embecta was -1.50% per year.


Embecta Gross Margin % Historical Data

The historical data trend for Embecta'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.

Embecta Gross Margin % Chart

Embecta Annual Data
Trend Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial 70.25 68.69 68.61 66.91 65.46

Embecta Quarterly Data
Sep19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 64.49 67.04 64.55 69.76 60.75

Competitive Comparison of Embecta's Gross Margin %

For the Medical Instruments & Supplies subindustry, Embecta'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.


Embecta's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Embecta's Gross Margin % distribution charts can be found below:

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



Embecta Gross Margin % Calculation

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

Embecta's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=662.4 / 1011.913
=(Revenue - Cost of Goods Sold) / Revenue
=(1011.913 - 349.498) / 1011.913
=65.46 %

Embecta's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=156.6 / 257.776
=(Revenue - Cost of Goods Sold) / Revenue
=(257.776 - 101.182) / 257.776
=60.75 %

* 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.


Embecta  (FRA:JX7) 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

Embecta had a gross margin of 60.75% for the quarter that ended in Sep. 2024 => 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.


Embecta Gross Margin % Related Terms

Thank you for viewing the detailed overview of Embecta's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Embecta Business Description

Traded in Other Exchanges
Address
300 Kimball Drive, Suite 300, Parsippany, NJ, USA, 07054
Embecta Corp is a medical technology company. The company develops innovative technology, services, and solutions that help advance both clinical therapy for patients and clinical processes for healthcare providers. Its products include BD Pyxis, PureWick, Phasix among others.

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