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Fresenius Medical Care AG (Fresenius Medical Care AG) Gross Margin %

: 27.06% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Fresenius Medical Care AG's Gross Profit for the three months ended in Dec. 2023 was $1,472 Mil. Fresenius Medical Care AG's Revenue for the three months ended in Dec. 2023 was $5,439 Mil. Therefore, Fresenius Medical Care AG's Gross Margin % for the quarter that ended in Dec. 2023 was 27.06%.

Warning Sign:

Fresenius Medical Care AG gross margin has been in long-term decline. The average rate of decline per year is -5%.


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

FMS' s Gross Margin % Range Over the Past 10 Years
Min: 25.23   Med: 31.08   Max: 33.89
Current: 25.32


During the past 13 years, the highest Gross Margin % of Fresenius Medical Care AG was 33.89%. The lowest was 25.23%. And the median was 31.08%.

FMS's Gross Margin % is ranked worse than
73.64% of 607 companies
in the Healthcare Providers & Services industry
Industry Median: 41.24 vs FMS: 25.32

Fresenius Medical Care AG had a gross margin of 27.06% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Fresenius Medical Care AG was -5.00% per year.


Fresenius Medical Care AG Gross Margin % Historical Data

The historical data trend for Fresenius Medical Care 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.

Fresenius Medical Care AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.87 31.01 27.09 25.23 25.32

Fresenius Medical Care 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 24.63 24.43 24.81 24.90 27.06

Competitive Comparison

For the Medical Care Facilities subindustry, Fresenius Medical Care 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.


Fresenius Medical Care AG Gross Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Fresenius Medical Care AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fresenius Medical Care AG's Gross Margin % falls into.



Fresenius Medical Care AG Gross Margin % Calculation

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

Fresenius Medical Care AG'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 )
=5370.8 / 21214.413
=(Revenue - Cost of Goods Sold) / Revenue
=(21214.413 - 15843.633) / 21214.413
=25.32 %

Fresenius Medical Care 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 )
=1471.8 / 5439.352
=(Revenue - Cost of Goods Sold) / Revenue
=(5439.352 - 3967.536) / 5439.352
=27.06 %

* 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.


Fresenius Medical Care AG  (NYSE:FMS) 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

Fresenius Medical Care AG had a gross margin of 27.06% 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.


Fresenius Medical Care AG Gross Margin % Related Terms

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Fresenius Medical Care AG (Fresenius Medical Care AG) Business Description

Address
Else-Kroener-Strasse 1, Bad Homburg, HE, DEU, 61352
Fresenius Medical Care is the largest dialysis company in the world, treating about 345,000 patients from over 4,100 clinics across the globe as of December 2022. In addition to providing dialysis services, the firm is a leading supplier of dialysis products, including machines, dialyzers, and concentrates. Fresenius accounts for about 35% of the global dialysis products market and benefits from being the world's only fully integrated dialysis business. Services account for roughly 80% of firmwide revenue, including care coordination and ancillary operations, while products account for the other roughly 20%. Products typically enjoy a higher margin, making them a strong contributor to the bottom line.
Executives
Helen Pring Giza Board of Directors