Mereo Biopharma Plc(Mreo) Financials: Gross Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for MREO
Report - gross profit margin
This chart shows the historical trend of gross profit margin for MREO compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Gross Profit Margin
Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.
Interpretation:
• In '2021', MREO's gross profit margin was 50.9%, showing profitability after production and operational costs. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 56.8%.
• In '2023', MREO's gross profit margin was 74.3%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 45.0%. Industry average declined by 11.8% from previous year.
Overall, MREO's gross profit margin has been volatile but showed an upward trend over the past 2 years.
Formula: Gross Profit Margin = (Revenue - COGS) / Revenue
Good Range: Often 20%-60% depending on industry.