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Novartis AG (STU:NOTA) Gross Margin % : 75.45% (As of Sep. 2024)


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What is Novartis AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Novartis AG's Gross Profit for the three months ended in Sep. 2024 was €8,954 Mil. Novartis AG's Revenue for the three months ended in Sep. 2024 was €11,868 Mil. Therefore, Novartis AG's Gross Margin % for the quarter that ended in Sep. 2024 was 75.45%.


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

STU:NOTA' s Gross Margin % Range Over the Past 10 Years
Min: 64.56   Med: 69.15   Max: 74.92
Current: 74.92


During the past 13 years, the highest Gross Margin % of Novartis AG was 74.92%. The lowest was 64.56%. And the median was 69.15%.

STU:NOTA's Gross Margin % is ranked better than
88.2% of 966 companies
in the Drug Manufacturers industry
Industry Median: 47.005 vs STU:NOTA: 74.92

Novartis AG had a gross margin of 75.45% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Novartis AG was 1.50% per year.


Novartis AG Gross Margin % Historical Data

The historical data trend for Novartis AG'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.

Novartis AG Gross Margin % Chart

Novartis AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 70.37 69.70 73.31 73.35 73.27

Novartis AG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.22 74.34 74.46 75.35 75.45

Competitive Comparison of Novartis AG's Gross Margin %

For the Drug Manufacturers - General subindustry, Novartis AG'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.


Novartis AG's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Gross Margin % distribution charts can be found below:

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



Novartis AG Gross Margin % Calculation

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

Novartis AG's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=31350.4 / 42787.22
=(Revenue - Cost of Goods Sold) / Revenue
=(42787.22 - 11436.824) / 42787.22
=73.27 %

Novartis AG's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=8954.1 / 11867.972
=(Revenue - Cost of Goods Sold) / Revenue
=(11867.972 - 2913.834) / 11867.972
=75.45 %

* 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.


Novartis AG  (STU:NOTA) 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

Novartis AG had a gross margin of 75.45% 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.


Novartis AG Gross Margin % Related Terms

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Novartis AG Business Description

Address
Lichtstrasse 35, Basel, CHE, 4056
Novartis develops and manufactures innovative drugs. The firm's key areas of drug development include oncology, rare diseases, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The company sells its products globally, with the United States representing close to one third of total revenue.

Novartis AG Headlines

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