Gross Margin % is calculated as gross profit divided by its revenue. Amgen's Gross Profit for the
three
months ended in Sep. 2024 was $5,193 Mil. Amgen's Revenue for the
three
months ended in Sep. 2024 was $8,503 Mil. Therefore, Amgen's Gross Margin % for the quarter that ended in Sep. 2024 was 61.07%.
Warning Sign:
Amgen Inc gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for Amgen's Gross Margin % or its related term are showing as below:
AMGN'
s Gross Margin % Range Over the Past 10 Years
Min: 63.3 Med: 79.23 Max: 82.73
Current: 63.3
During the past 13 years, the highestGross Margin % of Amgen was 82.73%. The lowest was 63.30%. And the median was 79.23%.
AMGN's Gross Margin % is ranked better than 77.02% of 966
companies
in the Drug Manufacturers industry
Industry Median: 47.005
vs AMGN: 63.30
Amgen had a gross margin of 61.07% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Amgen was -3.00% per year.
Amgen Gross Margin % Historical Data
The historical data trend for Amgen'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 - General subindustry, Amgen'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.
Amgen's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amgen's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amgen'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.
Amgen (NAS:AMGN) 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
Amgen had a gross margin of 61.07% for the quarter that ended in Sep. 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.
Amgen Gross Margin % Related Terms
Thank you for viewing the detailed overview of Amgen's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brings several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
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