GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Avantor Inc (NYSE:AVTR) » Definitions » Gross Margin %

Avantor (Avantor) Gross Margin % : 33.11% (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Avantor Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avantor's Gross Profit for the three months ended in Dec. 2023 was $570 Mil. Avantor's Revenue for the three months ended in Dec. 2023 was $1,723 Mil. Therefore, Avantor's Gross Margin % for the quarter that ended in Dec. 2023 was 33.11%.


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

AVTR' s Gross Margin % Range Over the Past 10 Years
Min: 31.03   Med: 33.91   Max: 46.25
Current: 33.93


During the past 8 years, the highest Gross Margin % of Avantor was 46.25%. The lowest was 31.03%. And the median was 33.91%.

AVTR's Gross Margin % is ranked better than
75.17% of 1510 companies
in the Chemicals industry
Industry Median: 22.315 vs AVTR: 33.93

Avantor had a gross margin of 33.11% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Avantor was 2.20% per year.


Avantor Gross Margin % Historical Data

The historical data trend for Avantor'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.

Avantor Gross Margin % Chart

Avantor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 31.80 32.54 33.88 34.65 33.93

Avantor 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 34.23 35.10 33.83 33.64 33.11

Competitive Comparison of Avantor's Gross Margin %

For the Specialty Chemicals subindustry, Avantor'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.


Avantor's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Avantor's Gross Margin % distribution charts can be found below:

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



Avantor Gross Margin % Calculation

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

Avantor's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2363.8 / 6967.2
=(Revenue - Cost of Goods Sold) / Revenue
=(6967.2 - 4603.4) / 6967.2
=33.93 %

Avantor'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 )
=570.4 / 1722.8
=(Revenue - Cost of Goods Sold) / Revenue
=(1722.8 - 1152.4) / 1722.8
=33.11 %

* 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.


Avantor  (NYSE:AVTR) 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

Avantor had a gross margin of 33.11% 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.


Avantor Gross Margin % Related Terms

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


Avantor (Avantor) Business Description

Traded in Other Exchanges
Address
100 Matsonford Road, Suite 200, Building One, Radnor Corporate Center, Radnor, PA, USA, 19087
Avantor Inc is involved in providing products and services to biopharma, healthcare, education and government, and advanced technologies and applied materials industries. The company's offerings include materials and consumables, equipment and instrumentation and services and specialty procurement. Its brand profile consists of NuSil, RANKEM, POCH, BeneSphera, and Macron Fine Chemicals among others. The firm operates in three geographical segments namely Americas, Europe, and AMEA. It generates a majority of its revenue from the Americas.
Executives
Benoit Gourdier officer: EVP, Biopharma Production 100 MATSONFORD ROAD, RADNOR PA 19087
Steven W Eck officer: SVP & Chief Accounting Officer C/O CSS INDUSTRIES, INC., 450 PLYMOUTH ROAD, SUITE 300, PLYMOUTH MEETING PA 19462
Frederic Vanderhaegen officer: EVP, Europe C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Brittany Hankamer officer: EVP, Chief HR Officer 100 MATSONFORD ROAD, RADNOR PA 19087
R. Brent Jones officer: EVP, Chief Financial Officer C/O PALL CORPORATION, 25 HARBOR PARK DRIVE, PORT WASHINGTON NY 11050
Claudius Sokenu officer: EVP, Chief Legal & Compliance C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
Randy Lee Stone officer: EVP, Proprietary Products 974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Christophe Couturier officer: See Remarks 9 FOURTH AVENUE, C/O OVASCIENCE INC., CAMBRIDGE MA 02451
Gerard Brophy officer: EVP, Biopharma Production C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Kitty Sahin officer: EVP, Strategy&Corp Development 100 MATSONFORD ROAD, RADNOR PA 19087
Thomas A Szlosek officer: EVP and CFO HONEYWELL INTERNATIONAL INC., 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Michael Stubblefield director, officer: President and CEO C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Rajiv Gupta director 234 RAVENCLIFF DRIVE, ST DAVIDS PA 19087
Joseph R Massaro director 5725 DELPHI DRIVE, TROY MI 48098
Mala Murthy director C/O TELADOC HEALTH, INC., 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577