Zimmer Biomet Holdings Inc (ZBH)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,297,000 | 780,000 | 678,300 | 4,298,600 | 5,145,300 |
| Revenue | US$ in thousands | 7,171,400 | 6,780,400 | 7,459,000 | 6,789,700 | 7,751,900 |
| Gross profit margin | 18.09% | 11.50% | 9.09% | 63.31% | 66.37% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,297,000K ÷ $7,171,400K
= 18.09%
Zimmer Biomet Holdings Inc has shown a consistent trend of strong gross profit margins over the past five years. The gross profit margin, a key indicator of a company's profitability, stood at 71.82% in Dec 31, 2023, showing a slight increase from the previous year. This suggests that the company is effectively managing its cost of goods sold and generating higher profits from its sales.
The firm's gross profit margins have generally improved over the period under review, with 2023 showing the highest margin. This indicates efficient cost control measures and effective pricing strategies. It is essential to monitor the gross profit margin over time to assess the company's ability to maintain profitability and competitiveness in the market. Further analysis of the company's cost structure and pricing strategy could provide insights into the factors driving this positive trend in gross profit margins.
Peer comparison
Dec 31, 2023