Zimmer Biomet Holdings Inc (ZBH)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,317,200 | 1,297,000 | 780,000 | 678,300 | 4,298,600 |
| Revenue | US$ in thousands | 7,434,500 | 7,171,400 | 6,780,400 | 7,459,000 | 6,789,700 |
| Gross profit margin | 17.72% | 18.09% | 11.50% | 9.09% | 63.31% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,317,200K ÷ $7,434,500K
= 17.72%
Zimmer Biomet Holdings Inc's gross profit margin has shown fluctuations over the years. In 2020, the gross profit margin was 63.31%, indicating a strong profitability in that year. However, there was a significant decline in 2021, where the gross profit margin dropped to 9.09%, which could be a cause for concern as it reflects a sharp decrease in profitability.
Subsequently, there was a slight improvement in 2022 with a gross profit margin of 11.50%, but it still remained relatively low compared to the 2020 level. The trend reversed in 2023 and 2024, with the gross profit margin increasing to 18.09% and 17.72% respectively. This indicates a positive development in the company's profitability, showing signs of recovery and potential growth in recent years.
Overall, the gross profit margin analysis suggests that Zimmer Biomet Holdings Inc has experienced fluctuations in profitability, with a substantial decline in 2021 followed by a gradual improvement in subsequent years. Monitoring and analyzing the factors impacting the gross profit margin will be essential for assessing the company's financial performance and sustainable growth in the future.
Peer comparison
Dec 31, 2024