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Siemens Healthineers AG (XSWX:SHL) Gross Margin % : 37.94% (As of Dec. 2023)


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What is Siemens Healthineers AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Siemens Healthineers AG's Gross Profit for the three months ended in Dec. 2023 was CHF1,852 Mil. Siemens Healthineers AG's Revenue for the three months ended in Dec. 2023 was CHF4,881 Mil. Therefore, Siemens Healthineers AG's Gross Margin % for the quarter that ended in Dec. 2023 was 37.94%.

Warning Sign:

Siemens Healthineers AG gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

XSWX:SHL' s Gross Margin % Range Over the Past 10 Years
Min: 35.56   Med: 39.19   Max: 41.64
Current: 35.89


During the past 9 years, the highest Gross Margin % of Siemens Healthineers AG was 41.64%. The lowest was 35.56%. And the median was 39.19%.

XSWX:SHL's Gross Margin % is ranked worse than
72.38% of 800 companies
in the Medical Devices & Instruments industry
Industry Median: 52.66 vs XSWX:SHL: 35.89

Siemens Healthineers AG had a gross margin of 37.94% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Siemens Healthineers AG was -2.50% per year.


Siemens Healthineers AG Gross Margin % Historical Data

The historical data trend for Siemens Healthineers AG'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.

Siemens Healthineers AG Gross Margin % Chart

Siemens Healthineers AG Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 39.92 38.59 38.63 37.47 35.56

Siemens Healthineers AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 36.58 30.36 37.22 37.86 37.94

Competitive Comparison of Siemens Healthineers AG's Gross Margin %

For the Medical Devices subindustry, Siemens Healthineers AG'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.


Siemens Healthineers AG's Gross Margin % Distribution in the Medical Devices & Instruments Industry

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

* The bar in red indicates where Siemens Healthineers AG's Gross Margin % falls into.



Siemens Healthineers AG Gross Margin % Calculation

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

Siemens Healthineers AG's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=7401.3 / 20814.651
=(Revenue - Cost of Goods Sold) / Revenue
=(20814.651 - 13413.353) / 20814.651
=35.56 %

Siemens Healthineers AG's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1852.2 / 4881.357
=(Revenue - Cost of Goods Sold) / Revenue
=(4881.357 - 3029.157) / 4881.357
=37.94 %

* 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.


Siemens Healthineers AG  (XSWX:SHL) 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

Siemens Healthineers AG had a gross margin of 37.94% for the quarter that ended in Dec. 2023 => 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.


Siemens Healthineers AG Gross Margin % Related Terms

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


Siemens Healthineers AG (XSWX:SHL) Business Description

Address
Siemensstr. 3, Forchheim, BY, DEU, 91301
Siemens Healthineers AG is engaged in the fields of diagnostic, therapeutic imaging, laboratory and point of care diagnostics as well as clinical consulting services. The imaging segment products equipment include magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging and ultrasound. The portfolio of the Diagnostics segment includes; immunochemistry, hematology, coagulation, urinalysis, etc. Advanced Therapies segment products are designed to support image-guided minimally invasive treatments in cardiology, interventional radiology and surgery. Varian segment provides multi-modality cancer care technologies, solutions and services to oncology departments in hospitals and clinics. It caters and earns revenue from Europe, the Middle East, Africa, China and others.

Siemens Healthineers AG (XSWX:SHL) Headlines

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