Terumo (Terumo) Gross Margin % : 52.95% (As of Dec. 2023)

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What is Terumo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Terumo's Gross Profit for the three months ended in Dec. 2023 was $879 Mil. Terumo's Revenue for the three months ended in Dec. 2023 was $1,660 Mil. Therefore, Terumo's Gross Margin % for the quarter that ended in Dec. 2023 was 52.95%.

Warning Sign:

Terumo Corp gross margin has been in long-term decline. The average rate of decline per year is -1.3%.

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

TRUMY' s Gross Margin % Range Over the Past 10 Years
Min: 50.89 Med: 53.24 Max: 54.69
Current: 51.27

During the past 13 years, the highest Gross Margin % of Terumo was 54.69%. The lowest was 50.89%. And the median was 53.24%.

TRUMY's Gross Margin % is ranked worse than
53.14% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.575 vs TRUMY: 51.27

Terumo had a gross margin of 52.95% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Terumo was -1.30% per year.

Terumo Gross Margin % Historical Data

The historical data trend for Terumo'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.

Terumo Gross Margin % Chart

Terumo Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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54.46

54.69

53.21

52.52

50.89

Terumo Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															51.87	48.97	51.01	51.81	52.95

Competitive Comparison of Terumo's Gross Margin %

For the Medical Instruments & Supplies subindustry, Terumo'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.

Terumo's Gross Margin % Distribution in the Medical Devices & Instruments Industry

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

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

Terumo Gross Margin % Calculation

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

Terumo's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	3122.5	/	6136.336
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6136.336 - 3013.819)	/	6136.336
	=	50.89 %

Terumo's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	879.2	/	1660.47
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1660.47 - 781.295)	/	1660.47
	=	52.95 %

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.

Terumo (OTCPK:TRUMY) 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

Terumo had a gross margin of 52.95% for the quarter that ended in Dec. 2023 => 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.

Terumo Gross Margin % Related Terms

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Terumo (Terumo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Terumo Corp (OTCPK:TRUMY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TRUMF:USA 4543:Japan TUO:Germany

Address

2-44-1 Hatagaya, Shibuya-ku, Tokyo, JPN, 151-0072

Website

https://www.terumo.com

Terumo Corp manufactures and sells medical products and equipment. The firm has three main businesses: blood management, cardiac and vascular, and general hospital. The cardiac and vascular business generates the largest proportion of revenue and sells cardiac and endovascular interventional therapies, cardiovascular surgical systems, neurovascular products, and vascular graft products. The general hospital business includes diabetes management, consumer healthcare, drug and device technologies, and general hospital products. The blood management business sells blood component, therapeutic apheresis, and cellular technologies. Terumo generates the majority of its revenue in Asia, with Japan contributing the largest proportion of Asian revenue.