The historical rank and industry rank for UnitedHealth Group's Gross Margin % or its related term are showing as below:
UNH'
s Gross Margin % Range Over the Past 10 Years
Min: 21.92 Med: 23.47 Max: 25.62
Current: 21.92
During the past 13 years, the highestGross Margin % of UnitedHealth Group was 25.62%. The lowest was 21.92%. And the median was 23.47%.
UNH's Gross Margin % is ranked worse than 56.25% of 16
companies
in the Healthcare Plans industry
Industry Median: 22.5
vs UNH: 21.92
UnitedHealth Group had a gross margin of 21.56% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for UnitedHealth Group was 0.30% per year.
UnitedHealth Group Gross Margin % Historical Data
The historical data trend for UnitedHealth Group'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.
Competitive Comparison of UnitedHealth Group's Gross Margin %
For the Healthcare Plans subindustry, UnitedHealth Group'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.
UnitedHealth Group's Gross Margin % Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, UnitedHealth Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where UnitedHealth Group's Gross Margin % falls into.
* 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.
UnitedHealth Group (NYSE:UNH) 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
UnitedHealth Group had a gross margin of 21.56% for the quarter that ended in Sep. 2024 => Competition eroding margins
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.
UnitedHealth Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of UnitedHealth Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
UnitedHealth Group is one of the largest private health insurers, providing medical benefits to about 50 million members globally, including 1 million outside the US as June 2024. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in managed care. Along with its insurance assets, UnitedHealth's continued investments in its Optum franchises have created a healthcare services colossus that spans everything from medical and pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
UNH has been successfully added to your 