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Alcon Gross Margin %

: 54.31% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Alcon's Gross Profit for the three months ended in Jun. 2022 was $1,204 Mil. Alcon's Revenue for the three months ended in Jun. 2022 was $2,217 Mil. Therefore, Alcon's Gross Margin % for the quarter that ended in Jun. 2022 was 54.31%.


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

ALC' s Gross Margin % Range Over the Past 10 Years
Min: 43.03   Med: 47.17   Max: 56.11
Current: 55.58


During the past 6 years, the highest Gross Margin % of Alcon was 56.11%. The lowest was 43.03%. And the median was 47.17%.

ALC's Gross Margin % is ranked better than
53.32% of 782 companies
in the Medical Devices & Instruments industry
Industry Median: 52.77 vs ALC: 55.58

Alcon had a gross margin of 54.31% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alcon was 2.00% per year.


Alcon Gross Margin % Historical Data

The historical data trend for Alcon'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.

Alcon Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only 47.17 44.62 48.77 43.03 56.11

Alcon Quarterly Data
Dec16 Dec17 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 57.82 56.85 56.12 55.19 54.31

Competitive Comparison

For the Medical Instruments & Supplies subindustry, Alcon'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.

   

Alcon Gross Margin % Distribution

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

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



Alcon Gross Margin % Calculation

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

Alcon's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=4652 / 8291
=(Revenue - Cost of Goods Sold) / Revenue
=(8291 - 3639) / 8291
=56.11 %

Alcon's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1204 / 2217
=(Revenue - Cost of Goods Sold) / Revenue
=(2217 - 1013) / 2217
=54.31 %

* 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.


Alcon  (NYSE:ALC) 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

Alcon had a gross margin of 54.31% for the quarter that ended in Jun. 2022 => 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.


Alcon Gross Margin % Related Terms

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


Alcon Business Description

Alcon logo
Traded in Other Exchanges
Address
Chemin de Blandonnet 8, Royce Bedward, Vernier, Geneva, CHE, 1214
Alcon, headquartered in Fort Worth, Texas, is the global eyecare leader with a diverse portfolio in ophthalmology including contact lenses, eye drops, surgical equipment, and related surgical products. Novartis purchased Alcon from Nestle in 2010 and, following nine years as a Novartis subsidiary, the company was spun-off as a public company in April 2019. The company reports five distinct segments: implantables (16% of revenue), consumables (31%), equipment (9%), contact lenses (27%), and ocular health (17%). The company is geographically diversified, with only about 40% of revenue from the U.S. market, and the firm has a strong presence in the European Union and Japan.

Alcon Headlines

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