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Horizon Therapeutics Gross Margin %

: 73.74% (As of Jun. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Horizon Therapeutics's Gross Profit for the three months ended in Jun. 2020 was $341 Mil. Horizon Therapeutics's Revenue for the three months ended in Jun. 2020 was $463 Mil. Therefore, Horizon Therapeutics's Gross Margin % for the quarter that ended in Jun. 2020 was 73.74%.


NAS:HZNP' s Gross Margin % Range Over the Past 10 Years
Min: -79.42   Med: 63.83   Max: 80.24
Current: 73.39

-79.42
80.24

During the past 12 years, the highest Gross Margin % of Horizon Therapeutics was 80.24%. The lowest was -79.42%. And the median was 63.83%.

NAS:HZNP's Gross Margin % is ranked higher than
85% of the 949 Companies
in the Drug Manufacturers industry.

( Industry Median: 48.23 vs. NAS:HZNP: 73.39 )

Horizon Therapeutics had a gross margin of 73.74% for the quarter that ended in Jun. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Horizon Therapeutics was -1.00% per year.


Horizon Therapeutics Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Horizon Therapeutics Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.01 60.05 53.29 67.60 72.14

Horizon Therapeutics Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 72.19 73.19 73.89 72.63 73.74

Competitive Comparison
* 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.


Horizon Therapeutics Gross Margin % Distribution

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



Horizon Therapeutics Gross Margin % Calculation

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

Horizon Therapeutics's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Gross Margin % (A: Dec. 2019 )=Gross Profit (A: Dec. 2019 ) / Revenue (A: Dec. 2019 )
=937.9 / 1300.029
=(Revenue - Cost of Goods Sold) / Revenue
=(1300.029 - 362.175) / 1300.029
=72.14 %

Horizon Therapeutics's Gross Margin for the quarter that ended in Jun. 2020 is calculated as


Gross Margin % (Q: Jun. 2020 )=Gross Profit (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=341.3 / 462.779
=(Revenue - Cost of Goods Sold) / Revenue
=(462.779 - 121.515) / 462.779
=73.74 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Horizon Therapeutics  (NAS:HZNP) 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

Horizon Therapeutics had a gross margin of 73.74% for the quarter that ended in Jun. 2020 => 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.


Horizon Therapeutics Gross Margin % Related Terms


Horizon Therapeutics Gross Margin % Headlines

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