Market Cap : 5.63 B | Enterprise Value : 9.27 B | PE Ratio : At Loss | PB Ratio : 1.16 |
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Gross Margin % is calculated as gross profit divided by its revenue. Perrigo Co's Gross Profit for the three months ended in Jun. 2022 was $372 Mil. Perrigo Co's Revenue for the three months ended in Jun. 2022 was $1,122 Mil. Therefore, Perrigo Co's Gross Margin % for the quarter that ended in Jun. 2022 was 33.17%.
Warning Sign:
Perrigo Co PLC gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Perrigo Co's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Perrigo Co was 40.02%. The lowest was 32.43%. And the median was 37.08%.
PRGO's Gross Margin % is ranked worse thanPerrigo Co had a gross margin of 33.17% for the quarter that ended in Jun. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Perrigo Co was -2.70% per year.
The historical data trend for Perrigo Co'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co'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.
For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perrigo Co's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Perrigo Co'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 ) |
= | 1416.2 | / | 4138.7 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (4138.7 - 2722.5) | / | 4138.7 | |
= | 34.22 % |
Perrigo Co'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 ) |
= | 372.1 | / | 1121.7 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1121.7 - 749.6) | / | 1121.7 | |
= | 33.17 % |
* 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.
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
Perrigo Co had a gross margin of 33.17% for the quarter that ended in Jun. 2022 => Competition eroding margins
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.
Thank you for viewing the detailed overview of Perrigo Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ives Alison | officer: EVP & Chief Scientific Officer | C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010 |
Hanson Kyle | officer: EVP & General Counsel | |
Bezerra Eduardo Guarita | officer: EVP & Chief Financial Officer | C/O FRESH DEL MONTE PRODUCE INC. PO BOX 149222 CORAL GABLES FL 33134 |
Ashford Orlando D | director | C/O AMERANT BANK 220 ALHAMBRA CR. CORAL GABLES FL 33134 |
Doyle Katherine C. | director | 100 ABBOTT PARK ROAD, AP6C-1N D032L ABBOTT PARK IL 60064 |
Sorota Richard S | officer: EVP & President CSCA | HARMAN INTERNATIONAL INDUSTRIES, INC. 1101 PENNSYLVANIA AVE, NW, #1010 WASHINGTON DC 20004 |
Mann Erica L | director | ONE KELLOGG SQUARE P.O. BOX 3599 BATTLE CREEK MI 49016-3599 |
Silcock Raymond | officer: EVP, Chief Financial Officer | 399 JEFFERSON ROAD PARSIPPANY NJ 07054 |
Willis Robert | officer: Acting CHRO | C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010 |
Dillard James E Iii | officer: EVP, Chief Scientific Officer | 6601 WEST BROAD STREET RICHMOND VA 23230 |
Kessler Murray S | director, officer: CEO | 714 GREEN VALLEY ROAD GREENSBORO NC 27408 |
Smith Jeffrey C | director | 777 THIRD AVENUE, 18TH FLOOR NEW YORK NY 10017 |
Roehrhoff Uwe | director, officer: CEO | C/O PERRIGO COMPANY PLC TREASURY BUILDING, LOWER GRAND CANAL ST DUBLIN L2 D2 |
Classon Rolf A | director | C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873 |
Karaboutis Adriana | director | C/O BIOGEN IDEC INC. 225 BINNEY ST. CAMBRIDGE MA 02142 |
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