Gross Margin % is calculated as gross profit divided by its revenue. Amneal Pharmaceuticals's Gross Profit for the
three
months ended in Dec. 2023 was $190 Mil. Amneal Pharmaceuticals's Revenue for the
three
months ended in Dec. 2023 was $617 Mil. Therefore, Amneal Pharmaceuticals's Gross Margin % for the quarter that ended in Dec. 2023 was 30.77%.
The historical rank and industry rank for Amneal Pharmaceuticals's Gross Margin % or its related term are showing as below:
AMRX'
s Gross Margin % Range Over the Past 10 Years
Min: 21.7 Med: 36.1 Max: 58.68
Current: 34.28
During the past 8 years, the highestGross Margin % of Amneal Pharmaceuticals was 58.68%. The lowest was 21.70%. And the median was 36.10%.
AMRX's Gross Margin % is ranked worse than 71.72% of 990
companies
in the Drug Manufacturers industry
Industry Median: 46.765
vs AMRX: 34.28
Amneal Pharmaceuticals had a gross margin of 30.77% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Amneal Pharmaceuticals was 1.40% per year.
Amneal Pharmaceuticals Gross Margin % Historical Data
The historical data trend for Amneal Pharmaceuticals'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 Amneal Pharmaceuticals's Gross Margin %
For the Drug Manufacturers - Specialty & Generic subindustry, Amneal Pharmaceuticals'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.
Amneal Pharmaceuticals's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amneal Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amneal Pharmaceuticals'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.
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
Amneal Pharmaceuticals had a gross margin of 30.77% 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.
Amneal Pharmaceuticals Gross Margin % Related Terms
Thank you for viewing the detailed overview of Amneal Pharmaceuticals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Amneal Pharmaceuticals (Amneal Pharmaceuticals) Business Description
Amneal Pharmaceuticals Inc is a generic pharmaceutical manufacturer. The company's reportable segments are Generic Products, Specialty products, and AvKARE. The Generics segment develops, manufactures and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products, and transdermals, and the Specialty segment is engaged in the development, promotion, sale and distribution of proprietary branded pharmaceutical products. The AvKARE segment provides pharmaceuticals, medical and surgical products, and services primarily to governmental agencies.
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