Gross Margin % is calculated as gross profit divided by its revenue. Merck's Gross Profit for the
three
months ended in Jun. 2022 was $10,377 Mil. Merck's Revenue for the
three
months ended in Jun. 2022 was $14,593 Mil. Therefore, Merck's Gross Margin % for the quarter that ended in Jun. 2022 was 71.11%.
The historical rank and industry rank for Merck's Gross Margin % or its related term are showing as below:
MRK'
s Gross Margin % Range Over the Past 10 Years
Min: 60.3 Med: 66.21 Max: 72.02
Current: 70.4
During the past 13 years, the highestGross Margin % of Merck was 72.02%. The lowest was 60.30%. And the median was 66.21%.
MRK's Gross Margin % is ranked better than 83.61% of 1019
companies
in the Drug Manufacturers industry
Industry Median: 46.66
vs MRK: 70.40
Merck had a gross margin of 71.11% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Merck was 1.50% per year.
Merck Gross Margin % Historical Data
The historical data trend for Merck'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.
Merck Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
67.82
68.06
69.29
67.20
72.02
Merck Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
72.78
73.77
71.35
66.17
71.11
Competitive Comparison
For the Drug Manufacturers - General subindustry, Merck'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.
Merck Gross Margin % Distribution
For the Drug Manufacturers industry and Healthcare sector, Merck's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merck'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.
Merck (NYSE:MRK) 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
Merck had a gross margin of 71.11% 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.
Merck Gross Margin % Related Terms
Thank you for viewing the detailed overview of Merck's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, close to half of the firm's sales are generated in the United States.
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