Abbott Laboratories gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Abbott Laboratories's Gross Margin % or its related term are showing as below:
ABT'
s Gross Margin % Range Over the Past 10 Years
Min: 54.47 Med: 56.52 Max: 58.53
Current: 55.55
During the past 13 years, the highestGross Margin % of Abbott Laboratories was 58.53%. The lowest was 54.47%. And the median was 56.52%.
ABT's Gross Margin % is ranked better than 54.64% of 809
companies
in the Medical Devices & Instruments industry
Industry Median: 52.08
vs ABT: 55.55
Abbott Laboratories had a gross margin of 55.64% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Abbott Laboratories was -1.20% per year.
Abbott Laboratories Gross Margin % Historical Data
The historical data trend for Abbott Laboratories'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.
Competitive Comparison of Abbott Laboratories's Gross Margin %
For the Medical Devices subindustry, Abbott Laboratories'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.
Abbott Laboratories's Gross Margin % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories'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.
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
Abbott Laboratories had a gross margin of 55.64% for the quarter that ended in Jun. 2024 => 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.
Abbott Laboratories Gross Margin % Related Terms
Thank you for viewing the detailed overview of Abbott Laboratories's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.
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