Gross Margin % is calculated as gross profit divided by its revenue. Boston Scientific's Gross Profit for the
three
months ended in Dec. 2023 was $2,578 Mil. Boston Scientific's Revenue for the
three
months ended in Dec. 2023 was $3,725 Mil. Therefore, Boston Scientific's Gross Margin % for the quarter that ended in Dec. 2023 was 69.21%.
The historical rank and industry rank for Boston Scientific's Gross Margin % or its related term are showing as below:
BSX'
s Gross Margin % Range Over the Past 10 Years
Min: 64.59 Med: 69.75 Max: 70.65
Current: 69.4
During the past 13 years, the highestGross Margin % of Boston Scientific was 70.65%. The lowest was 64.59%. And the median was 69.75%.
BSX's Gross Margin % is ranked better than 77.26% of 796
companies
in the Medical Devices & Instruments industry
Industry Median: 53.54
vs BSX: 69.40
Boston Scientific had a gross margin of 69.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Boston Scientific was -0.30% per year.
Boston Scientific Gross Margin % Historical Data
The historical data trend for Boston Scientific'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 Medical Devices subindustry, Boston Scientific'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.
Boston Scientific Gross Margin % Distribution
For the Medical Devices & Instruments industry and Healthcare sector, Boston Scientific's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Boston Scientific'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.
Boston Scientific (NYSE:BSX) 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
Boston Scientific had a gross margin of 69.21% 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.
Boston Scientific Gross Margin % Related Terms
Thank you for viewing the detailed overview of Boston Scientific's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Boston Scientific (Boston Scientific) Business Description
Boston Scientific produces less invasive medical devices that are inserted into the human body through small openings or cuts. It manufactures products for use in angioplasty, blood clot filtration, cardiac rhythm management, catheter-directed ultrasound imaging, upper gastrointestinal tract diagnostics, interventional oncology, neuromodulation for chronic pain, and treatment of incontinence. The firm markets its devices to healthcare professionals and institutions globally. Foreign sales account for nearly half of the firm's total sales.
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