ZimVie (FRA:O23) Gross Margin %

: 77.65% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. ZimVie's Gross Profit for the three months ended in Dec. 2023 was €-139.4 Mil. ZimVie's Revenue for the three months ended in Dec. 2023 was €-179.5 Mil. Therefore, ZimVie's Gross Margin % for the quarter that ended in Dec. 2023 was 77.65%.

Warning Sign:

ZimVie Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.

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

FRA:O23' s Gross Margin % Range Over the Past 10 Years
Min: 62.74 Med: 64.33 Max: 68.37
Current: 63.48

During the past 6 years, the highest Gross Margin % of ZimVie was 68.37%. The lowest was 62.74%. And the median was 64.33%.

FRA:O23's Gross Margin % is ranked better than
65.91% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 53.54 vs FRA:O23: 63.48

ZimVie had a gross margin of 77.65% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ZimVie was -1.10% per year.

ZimVie Gross Margin % Historical Data

The historical data trend for ZimVie'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.

ZimVie Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

68.37

65.71

62.74

63.45

63.48

ZimVie Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %												74.19	68.48	66.87	67.84	77.65

Competitive Comparison

For the Medical Devices subindustry, ZimVie'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.

ZimVie Gross Margin % Distribution

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

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

ZimVie Gross Margin % Calculation

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

ZimVie'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 )
	=	266.3	/	419.466
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(419.466 - 153.185)	/	419.466
	=	63.48 %

ZimVie'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 )
	=	-139.4	/	-179.514
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(-179.514 - -40.113)	/	-179.514
	=	77.65 %

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.

ZimVie (FRA:O23) 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

ZimVie had a gross margin of 77.65% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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.

ZimVie Gross Margin % Related Terms

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ZimVie (FRA:O23) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » ZimVie Inc (FRA:O23) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ZIMV:USA

Address

10225 Westmoor Drive, Westminster, CO, USA, 80021

Website

https://www.zimvie.com

ZimVie Inc is focused on the dental and spine markets and their respective growth drivers such as implants, surgical tools, bone graft substitutes, spinal fusion implants, non-fusion alternatives, and digital care management solutions. Business is organized into two operating segments the spine products segment and the dental products segment.

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