Zimmer Biomet Holdings Inc (ZBH)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Gross profit (ttm) US$ in thousands 1,317,100 1,355,400 1,329,700 1,299,800 1,297,200 907,700 911,300 898,600 780,000 664,500 634,700 636,300 671,500 2,366,800 3,248,500 3,499,200 4,298,600 4,409,300 4,409,200 5,015,700
Revenue (ttm) US$ in thousands 7,434,500 7,373,400 7,289,700 7,214,600 7,171,500 7,054,100 6,993,800 6,933,800 6,780,400 6,827,800 7,061,000 7,290,300 7,452,200 7,716,200 7,722,600 6,923,200 6,840,900 6,881,300 6,840,200 7,596,700
Gross profit margin 17.72% 18.38% 18.24% 18.02% 18.09% 12.87% 13.03% 12.96% 11.50% 9.73% 8.99% 8.73% 9.01% 30.67% 42.06% 50.54% 62.84% 64.08% 64.46% 66.02%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,317,100K ÷ $7,434,500K
= 17.72%

The gross profit margin of Zimmer Biomet Holdings Inc has shown fluctuations over the periods provided in the data.

From March 31, 2020, to September 30, 2021, the gross profit margin experienced a steady decline from 66.02% to 30.67%, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold. This downward trend could be attributed to various factors such as rising production costs, pricing pressures, or changes in product mix.

However, starting from December 31, 2021, there was a reversal in this trend, with the gross profit margin gradually increasing to 18.09% by December 31, 2023. This improvement suggests that Zimmer Biomet Holdings Inc implemented strategies to enhance its profitability, such as cost-saving measures, pricing adjustments, or operational efficiency enhancements.

Although there was a slight dip in the gross profit margin to 17.72% by December 31, 2024, the overall trend indicates a recovery in the company's profitability compared to the earlier declining years. Maintaining or further improving the gross profit margin will be crucial for Zimmer Biomet Holdings Inc to sustain its financial health and competitiveness in the industry.