MCKNEUTRAL

MCK Gross Margin Analysis

3.5%

Updated 6h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so at 3.5% MCK retains only 3.5 cents of every sales dollar to cover operating expenses and profit.

Sector Performance

0th percentile

MCK

3.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

4.2%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so at 3.5% MCK retains only 3.5 cents of every sales dollar to cover operating expenses and profit.

This is vastly below the sector median of 46.4%, placing the company at the 0th percentile among peers, meaning nearly all competitors have higher gross margins. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 16.7%, with the most recent historical values moving from 4.2% down to 3.5%. The combination of an extremely low margin and a recent downward trend points to elevated operating risk, as the company has very little cushion against rising costs or revenue shortfalls. This metric contradicts the overall NEUTRAL verdict, because a gross margin near zero and falling is a negative signal for profitability and competitive positioning.

Frequently Asked Questions

What does the Gross Margin tell investors about MCK?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MCK's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.