Gross Margin % is calculated as gross profit divided by its revenue. Medtronic's Gross Profit for the
three
months ended in Apr. 2022 was $5,498 Mil. Medtronic's Revenue for the
three
months ended in Apr. 2022 was $8,089 Mil. Therefore, Medtronic's Gross Margin % for the quarter that ended in Apr. 2022 was 67.97%.
The historical rank and industry rank for Medtronic's Gross Margin % or its related term are showing as below:
MDT'
s Gross Margin % Range Over the Past 10 Years
Min: 65.19 Med: 68.79 Max: 75.13
Current: 67.98
During the past 13 years, the highestGross Margin % of Medtronic was 75.13%. The lowest was 65.19%. And the median was 68.79%.
MDT's Gross Margin % is ranked better than 73.62% of 781
companies
in the Medical Devices & Instruments industry
Industry Median: 52.98
vs MDT: 67.98
Medtronic had a gross margin of 67.97% for the quarter that ended in Apr. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Medtronic was -0.80% 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
Apr13
Apr14
Apr15
Apr16
Apr17
Apr18
Apr19
Apr20
Apr21
Apr22
Gross Margin %
69.73
70.04
67.41
65.19
67.98
Medtronic Quarterly Data
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Gross Margin %
67.60
67.47
68.18
68.32
67.97
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.
* 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.
Medtronic (NYSE:MDT) 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 67.97% for the quarter that ended in Apr. 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.
Medtronic Gross Margin % Related Terms
Thank you for viewing the detailed overview of Medtronic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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 almost 50% of the company's total sales.
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