MKGAF (Merck KGaA) Gross Margin % : 57.20% (As of Dec. 2024)

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What is Merck KGaA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Merck KGaA's Gross Profit for the three months ended in Dec. 2024 was $3,245 Mil. Merck KGaA's Revenue for the three months ended in Dec. 2024 was $5,673 Mil. Therefore, Merck KGaA's Gross Margin % for the quarter that ended in Dec. 2024 was 57.20%.

Warning Sign:

Merck KGaA gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

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

MKGAF' s Gross Margin % Range Over the Past 10 Years
Min: 59.01 Med: 62.74 Max: 68.27
Current: 59.01

During the past 13 years, the highest Gross Margin % of Merck KGaA was 68.27%. The lowest was 59.01%. And the median was 62.74%.

MKGAF's Gross Margin % is ranked better than
68.95% of 947 companies
in the Drug Manufacturers industry
Industry Median: 47.6 vs MKGAF: 59.01

Merck KGaA had a gross margin of 57.20% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Merck KGaA was -1.20% per year.

Merck KGaA Gross Margin % Historical Data

The historical data trend for Merck KGaA'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.

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Merck KGaA Gross Margin % Chart

Merck KGaA Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

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61.02

62.66

61.65

59.03

59.01

Merck KGaA Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial															55.46	58.77	60.41	59.70	57.20

Competitive Comparison of Merck KGaA's Gross Margin %

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

Merck KGaA's Gross Margin % Distribution in the Drug Manufacturers Industry

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

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

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Merck KGaA Gross Margin % Calculation

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

Merck KGaA's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )	=	Gross Profit (A: Dec. 2024 )	/	Revenue (A: Dec. 2024 )
	=	13073.3	/	22152.88
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22152.88 - 9079.582)	/	22152.88
	=	59.01 %

Merck KGaA's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	3245	/	5673.298
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5673.298 - 2428.272)	/	5673.298
	=	57.20 %

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.

Merck KGaA (OTCPK:MKGAF) 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

Merck KGaA had a gross margin of 57.20% for the quarter that ended in Dec. 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.

Merck KGaA Gross Margin % Related Terms

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Merck KGaA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (OTCPK:MKGAF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MKKGY:USA 1MRK:Italy MRKd:UK 0O14:UK MRKC:Germany MRK:Germany MRKC:Germany MRK:Germany MRK:Germany MRK:Germany MRK:Bulgaria MRCK:Austria

Address

Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293

Website

https://www.emdgroup.com

Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.