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Elanco Animal Health (Elanco Animal Health) Gross Margin %

: 50.14% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Elanco Animal Health's Gross Profit for the three months ended in Dec. 2023 was $519 Mil. Elanco Animal Health's Revenue for the three months ended in Dec. 2023 was $1,035 Mil. Therefore, Elanco Animal Health's Gross Margin % for the quarter that ended in Dec. 2023 was 50.14%.


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

ELAN' s Gross Margin % Range Over the Past 10 Years
Min: 47.28   Med: 51.64   Max: 56.63
Current: 56.28


During the past 9 years, the highest Gross Margin % of Elanco Animal Health was 56.63%. The lowest was 47.28%. And the median was 51.64%.

ELAN's Gross Margin % is ranked better than
66.16% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.855 vs ELAN: 56.28

Elanco Animal Health had a gross margin of 50.14% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Elanco Animal Health was 3.20% per year.


Elanco Animal Health Gross Margin % Historical Data

The historical data trend for Elanco Animal Health'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.

Elanco Animal Health Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 52.13 49.04 55.25 56.63 56.28

Elanco Animal Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 54.52 60.70 58.94 54.40 50.14

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health'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.


Elanco Animal Health Gross Margin % Distribution

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

* The bar in red indicates where Elanco Animal Health's Gross Margin % falls into.



Elanco Animal Health Gross Margin % Calculation

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

Elanco Animal Health'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 )
=2486 / 4417
=(Revenue - Cost of Goods Sold) / Revenue
=(4417 - 1931) / 4417
=56.28 %

Elanco Animal Health's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=519 / 1035
=(Revenue - Cost of Goods Sold) / Revenue
=(1035 - 516) / 1035
=50.14 %

* 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.


Elanco Animal Health  (NYSE:ELAN) 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

Elanco Animal Health had a gross margin of 50.14% 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.


Elanco Animal Health Gross Margin % Related Terms

Thank you for viewing the detailed overview of Elanco Animal Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Elanco Animal Health (Elanco Animal Health) Business Description

Traded in Other Exchanges
Address
2500 Innovation Way, Greenfield, IN, USA, 46140
Elanco Animal Health Inc is an animal health company that is engaged in innovating, developing, manufacturing, and marketing products for companion and food animals. Geographically, the company's operations are conducted globally and sell its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, goats, and swine production.
Executives
Grace Mcardle officer: EVP, MANUFACTURING AND QUALITY 2500 INNOVATION WAY, GREENFIELD IN 46140
Timothy J Bettington officer: See remarks C/O ZOETIS INC., 10 SYLVAN WAY, PARSIPPANY NJ 07054
R David Hoover director C/O EDGEWELL PERSONAL CARE COMPANY, 1350 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
Jeffrey N Simmons director, officer: Pres., Chief Executive Officer 2500 INNOVATION WAY, GREENFIELD IN 46140
John P Bilbrey director
Rajeev A. Modi officer: See Remarks 2500 INNOVATION WAY, GREENFIELD IN 46140
Paul Herendeen director C/O BAUSCH HEALTH COMPANIES INC., 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Michael J Harrington director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Brabander Ellen De officer: See Remarks 2500 INNOVATION WAY, GREENFIELD IN 46140
Marcela A. Kirberger officer: Ex VP, Gen Counsel & Corp Sec C/O ELANCO ANIMAL HEALTH INCORPORATED, 2500 INNOVATION WAY, GREENFIELD IN 46140
Art A Garcia director 11690 N.W. 105TH STREET, MIAMI FL 33178
William F Doyle director
Uncas Gp Llc director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Sachem Head Capital Management Lp director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Scott D. Ferguson director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019