Teva Pharmaceutical Industries (Teva Pharmaceutical Industries) Gross Margin %

: 54.18% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Teva Pharmaceutical Industries's Gross Profit for the three months ended in Dec. 2023 was $2,415 Mil. Teva Pharmaceutical Industries's Revenue for the three months ended in Dec. 2023 was $4,457 Mil. Therefore, Teva Pharmaceutical Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 54.18%.

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

TEVA' s Gross Margin % Range Over the Past 10 Years
Min: 44.63 Med: 48.04 Max: 57.79
Current: 48.24

During the past 13 years, the highest Gross Margin % of Teva Pharmaceutical Industries was 57.79%. The lowest was 44.63%. And the median was 48.04%.

TEVA's Gross Margin % is ranked better than
52.98% of 991 companies
in the Drug Manufacturers industry
Industry Median: 46.83 vs TEVA: 48.24

Teva Pharmaceutical Industries had a gross margin of 54.18% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Teva Pharmaceutical Industries was 1.40% per year.

Teva Pharmaceutical Industries Gross Margin % Historical Data

The historical data trend for Teva Pharmaceutical Industries'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.

Teva Pharmaceutical Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

44.63

46.38

47.82

46.72

48.25

Teva Pharmaceutical Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																45.58	43.20	46.32	48.08	54.18

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.

Teva Pharmaceutical Industries Gross Margin % Distribution

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

* The bar in red indicates where Teva Pharmaceutical Industries's Gross Margin % falls into.

Teva Pharmaceutical Industries Gross Margin % Calculation

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

Teva Pharmaceutical Industries'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 )
	=	7645	/	15845
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15845 - 8200)	/	15845
	=	48.25 %

Teva Pharmaceutical Industries'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 )
	=	2415	/	4457
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4457 - 2042)	/	4457
	=	54.18 %

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.

Teva Pharmaceutical Industries (NYSE:TEVA) 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

Teva Pharmaceutical Industries had a gross margin of 54.18% 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.

Teva Pharmaceutical Industries Gross Margin % Related Terms

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Teva Pharmaceutical Industries (Teva Pharmaceutical Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Teva Pharmaceutical Industries Ltd (NYSE:TEVA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TEVJF:USA TEVA:Mexico TEVA:Israel 0LER:UK TEV:Germany TEV:Germany TEV:Germany T1EV34:Brazil TEVA:Austria

Address

124 Dvora HaNevi’a Street, Tel Aviv, ISR, 6944020

Website

https://www.tevapharm.com

Teva Pharmaceutical, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the U.S. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: central nervous system with Copaxone, Ajovy and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a U.S.-based generic and specialty drug distributor.

Executives

Dov Bergwerk	officer: Acting Chief Legal Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Vikki L Conway	officer: See "Remarks"	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Varda Shalev	director	MATAM PARK, BUILDING #5, HAIFA L3 3508409
Eliyahu Sharon Kalif	officer: EVP, Chief Financial Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Amir Weiss	officer: Chief Accounting Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Angus Grant	officer: EVP, Business Development	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Eric A Hughes	officer: See "Remarks"	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Sven Dethlefs	officer: EVP Global Marketing&Portfolio	5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Eric Drape	officer: Executive VP Global Operations	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
David Matthew Stark	officer: Exec. VP Chief Legal Officer	5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Richard Daniell	officer: Exec. VP, European Commercial	5 BASEL STREET, PO BOX 3190, PETACH TIKVA L3 4951033
Richard D Francis	officer: President and CEO	IM LANGACHER 44, GREIFENSEE V8 8606
Hafrun Fridriksdottir	officer: Executive VP, Global R&D	400 INTERPACE PARKWAY, PARSIPPANY NJ 07054
Eli Shani	officer: EVP,Global Marketing&Portfolio	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Tal Zvi Zaks	director	C/O ADAPTIMMUNE THERAPEUTICS PLC, 60 JUBILEE AVE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 OX14 4RX