Medtronic (HAM:2M6) Gross Margin %

: 65.61% (As of Jan. 2024)

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Gross Margin % is calculated as gross profit divided by its revenue. Medtronic's Gross Profit for the three months ended in Jan. 2024 was €4,872 Mil. Medtronic's Revenue for the three months ended in Jan. 2024 was €7,426 Mil. Therefore, Medtronic's Gross Margin % for the quarter that ended in Jan. 2024 was 65.61%.

Warning Sign:

Medtronic PLC gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

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

HAM:2M6' s Gross Margin % Range Over the Past 10 Years
Min: 65.19 Med: 68.51 Max: 74.52
Current: 65.5

During the past 13 years, the highest Gross Margin % of Medtronic was 74.52%. The lowest was 65.19%. And the median was 68.51%.

HAM:2M6's Gross Margin % is ranked better than
70.85% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.54 vs HAM:2M6: 65.50

Medtronic had a gross margin of 65.61% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Medtronic was -1.20% per year.

Medtronic Gross Margin % Historical Data

The historical data trend for Medtronic'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.

Medtronic Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Gross Margin %

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70.04

67.41

65.19

67.98

65.67

Medtronic Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															65.20	65.14	65.88	65.42	65.61

Competitive Comparison

For the Medical Devices subindustry, Medtronic'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.

Medtronic Gross Margin % Distribution

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

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

Medtronic Gross Margin % Calculation

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

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

Gross Margin % (A: Apr. 2023 )	=	Gross Profit (A: Apr. 2023 )	/	Revenue (A: Apr. 2023 )
	=	18703.3	/	28479.024
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28479.024 - 9775.728)	/	28479.024
	=	65.67 %

Medtronic's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	4871.8	/	7425.702
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7425.702 - 2553.876)	/	7425.702
	=	65.61 %

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.

Medtronic (HAM:2M6) 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

Medtronic had a gross margin of 65.61% for the quarter that ended in Jan. 2024 => 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.

Medtronic Gross Margin % Related Terms

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Medtronic (HAM:2M6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Medtronic PLC (HAM:2M6) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MDT:USA MDTN:Mexico 1MDT:Italy 2M6:Germany MDTC34:Brazil MDT:Austria MDT:Argentina

Address

Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2

Website

https://www.medtronic.com

One of the largest medical-device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for roughly 50% of the company's total sales.

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