Gross Margin % is calculated as gross profit divided by its revenue. Kenvue's Gross Profit for the
three
months ended in Mar. 2024 was $2,242 Mil. Kenvue's Revenue for the
three
months ended in Mar. 2024 was $3,894 Mil. Therefore, Kenvue's Gross Margin % for the quarter that ended in Mar. 2024 was 57.58%.
The historical rank and industry rank for Kenvue's Gross Margin % or its related term are showing as below:
KVUE'
s Gross Margin % Range Over the Past 10 Years
Min: 53.49 Med: 55.42 Max: 56.57
Current: 56.57
During the past 5 years, the highestGross Margin % of Kenvue was 56.57%. The lowest was 53.49%. And the median was 55.42%.
KVUE's Gross Margin % is ranked better than 89.15% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 25.19
vs KVUE: 56.57
Kenvue had a gross margin of 57.58% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kenvue was 0.00% per year.
Kenvue Gross Margin % Historical Data
The historical data trend for Kenvue'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 Household & Personal Products subindustry, Kenvue'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.
Kenvue's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kenvue's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kenvue'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.
Kenvue (NYSE:KVUE) 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
Kenvue had a gross margin of 57.58% for the quarter that ended in Mar. 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.
Kenvue Gross Margin % Related Terms
Thank you for viewing the detailed overview of Kenvue's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kenvue is the world's largest pure-play consumer health company by sales, generating $15 billion in annual revenue. Formerly known as Johnson & Johnson's consumer segment, Kenvue spun off and went public in May 2023. It operates in a variety of silos within consumer health, such as cough, cold and allergy care, pain management, face and body care, and oral care, as well as women's health. Its portfolio includes a wide array of some of the most well-known brands in the space, including Tylenol, Listerine, Johnson's, Aveeno, and Neutrogena. Despite playing in a fragmented industry with intense competition and ever-changing consumer preferences, many of Kenvue's brands are the global leader in their respective segment thanks to their strong brand power.
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