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Medtronic Gross Margin %

: 65.87% (As of Jul. 2022)
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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 Jul. 2022 was $4,855 Mil. Medtronic's Revenue for the three months ended in Jul. 2022 was $7,371 Mil. Therefore, Medtronic's Gross Margin % for the quarter that ended in Jul. 2022 was 65.87%.


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: 67.61


During the past 13 years, the highest Gross 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
72.67% of 783 companies
in the Medical Devices & Instruments industry
Industry Median: 52.75 vs MDT: 67.61

Medtronic had a gross margin of 65.87% for the quarter that ended in Jul. 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.73 70.04 67.41 65.19 67.98

Medtronic 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 67.47 68.18 68.32 67.97 65.87

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. 2022 is calculated as

Gross Margin % (A: Apr. 2022 )=Gross Profit (A: Apr. 2022 ) / Revenue (A: Apr. 2022 )
=21541 / 31686
=(Revenue - Cost of Goods Sold) / Revenue
=(31686 - 10145) / 31686
=67.98 %

Medtronic'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 )
=4855 / 7371
=(Revenue - Cost of Goods Sold) / Revenue
=(7371 - 2516) / 7371
=65.87 %

* 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 65.87% for the quarter that ended in Jul. 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.


Medtronic Business Description

Medtronic logo
Address
Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2
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.
Executives
Fong Ivan K officer: EVP GENERAL COUNSEL & SECR 3M CENTER ST. PAUL MN 55144-1000
Kirk Jennifer M officer: Chief Accounting Officer 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Lofton Kevin E director GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Wall Brett A. officer: EVP & Group Pres Restora Thera 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Salmon Sean officer: EVP & Group President Diabetes MEDTRONIC PLC, 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Liddicoat John R officer: EVP & President of Americas MEDTRONIC PLC 710 MEDTRONIC PKWY, MS LC300 MINNEAPOLIS MN 55432
White Robert John officer: EVP & President MITG MEDTRONIC PLC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Parkhill Karen L officer: EVP & Chief Financial Officer 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Reddy Preetha director APOLLO HOSPITALS 21 GREAMS LN, OFF GREAMS RD CHENNAI K7 600006
Ellis Gary Lee officer: EVP & Chief Financial Officer THE TORO COMPANY 8111 LYNDALE AVENUE SOUTH BLOOMINGTON MN 55420
Hanson Bryan C officer: EVP AND PRESIDENT, COVIDIEN ZIMMER BIOMET HOLDINGS 345 E. MAIN STREET WARSAW IN 46580
Hakami Hooman officer: EVP & Group President Diabetes 710 MEDTRONIC PKWY MSLC300 MINNEAPOLIS MN 55432
Oconnell Christopher J officer: See Remarks MEDTRONIC, INC. 710 MEDTRONIC PKWY MINNEAPOLIS MN 55432
Lenehan James T director C/O MEDTRONIC INC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432

Medtronic Headlines

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