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Patterson Gross Margin %

: 20.49% (As of Jul. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Patterson's Gross Profit for the three months ended in Jul. 2022 was $312 Mil. Patterson's Revenue for the three months ended in Jul. 2022 was $1,523 Mil. Therefore, Patterson's Gross Margin % for the quarter that ended in Jul. 2022 was 20.49%.

Warning Sign:

Patterson Companies Inc gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

PDCO' s Gross Margin % Range Over the Past 10 Years
Min: 19.83   Med: 22.61   Max: 32.74
Current: 20.65


During the past 13 years, the highest Gross Margin % of Patterson was 32.74%. The lowest was 19.83%. And the median was 22.61%.

PDCO's Gross Margin % is ranked better than
54.76% of 84 companies
in the Medical Distribution industry
Industry Median: 19.06 vs PDCO: 20.65

Patterson had a gross margin of 20.49% for the quarter that ended in Jul. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Patterson was -2.80% per year.


Patterson Gross Margin % Historical Data

The historical data trend for Patterson'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.

Patterson Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.94 21.36 21.81 20.35 19.83

Patterson Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
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 17.20 19.79 21.08 21.25 20.49

Competitive Comparison

For the Medical Distribution subindustry, Patterson'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.

   

Patterson Gross Margin % Distribution

For the Medical Distribution industry and Healthcare sector, Patterson's Gross Margin % distribution charts can be found below:

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



Patterson Gross Margin % Calculation

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

Patterson's Gross Margin for the fiscal year that ended in Apr. 2022 is calculated as

Gross Margin % (A: Apr. 2022 )=Gross Profit (A: Apr. 2022 ) / Revenue (A: Apr. 2022 )
=1289.1 / 6499.405
=(Revenue - Cost of Goods Sold) / Revenue
=(6499.405 - 5210.318) / 6499.405
=19.83 %

Patterson's Gross Margin for the quarter that ended in Jul. 2022 is calculated as


Gross Margin % (Q: Jul. 2022 )=Gross Profit (Q: Jul. 2022 ) / Revenue (Q: Jul. 2022 )
=312.1 / 1523.265
=(Revenue - Cost of Goods Sold) / Revenue
=(1523.265 - 1211.132) / 1523.265
=20.49 %

* 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.


Patterson  (NAS:PDCO) 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

Patterson had a gross margin of 20.49% for the quarter that ended in Jul. 2022 => 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.


Patterson Gross Margin % Related Terms

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


Patterson Business Description

Patterson logo
Traded in Other Exchanges
Address
1031 Mendota Heights Road, Saint Paul, MN, USA, 55120
Patterson is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental and Patterson Animal Health. The firm offers dental and veterinary practice management products, including office software products, technical, financial, and educational services, primarily to two highly fragmented market segments throughout the U.S. and Canada. The company began as a dental distributor in 1877 and expanded to become a major supplier of animal health products to vets and production companies through an acquisition of Animal Health International in 2015. Patterson also has a presence in the U.K. animal health market.
Executives
Mckoy Philip director 120 BROADWAY SUITE 200 SANTA MONICA CA 90401
Rogan Timothy E officer: President - Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Shirley Eric R officer: President-Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Zurbay Donald officer: Chief Financial Officer C/O ST. JUDE MEDICAL, INC. ONE ST JUDE MEDICAL DRIVE ST. PAUL MN 55117
Malecha Francis Joseph director 9900 WEST 109TH STREET, SUITE 100 OVERLAND PARK KS 66210
Frohning Andrea L. officer: Chief Human Resources Officer 13515 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Frenzel Robert director 414 NICOLLET MALL MINNEAPOLIS MN 55401
Goedken Dennis W officer: Interim CFO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Walchirk Mark S director, officer: President & CEO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Pohlman Kevin M officer: President - Animal Health 822 7TH STREET, SUITE 740 GREELEY CO 80631
Blanco Alex N director ONE BAXTER PARKWAY DEERFIELD IL 60015
Misiak David G officer: President, Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Baker Kelly A officer: CHRO 1031 MENDOTA HEIGHTS ST. PAUL MN 55120
Korsh Les B officer: VP, General Counsel 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55110
Adent John Edward officer: CEO - Subsidiary 822 7TH STREET, SUITE 740 GREELEY CO 80631

Patterson Headlines

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