Brookfield Asset Management (Brookfield Asset Management) Gross Margin %

: -7.50% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Brookfield Asset Management's Gross Profit for the three months ended in Dec. 2023 was $-12.0 Mil. Brookfield Asset Management's Revenue for the three months ended in Dec. 2023 was $160.0 Mil. Therefore, Brookfield Asset Management's Gross Margin % for the quarter that ended in Dec. 2023 was -7.50%.

The historical rank and industry rank for Brookfield Asset Management's Gross Margin % or its related term are showing as below:

BAM' s Gross Margin % Range Over the Past 10 Years
Min: 14.88 Med: 74.78 Max: 76.94
Current: 24.11

During the past 4 years, the highest Gross Margin % of Brookfield Asset Management was 76.94%. The lowest was 14.88%. And the median was 74.78%.

BAM's Gross Margin % is ranked worse than
70.73% of 533 companies
in the Asset Management industry
Industry Median: 50.22 vs BAM: 24.11

Brookfield Asset Management had a gross margin of -7.50% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Brookfield Asset Management was 0.00% per year.

Brookfield Asset Management Gross Margin % Historical Data

The historical data trend for Brookfield Asset Management's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brookfield Asset Management Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Gross Margin %

76.94

74.78

14.88

Brookfield Asset Management Quarterly Data
	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial						58.69	-	21.28	15.79	-7.50

Competitive Comparison

For the Asset Management subindustry, Brookfield Asset Management's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Brookfield Asset Management Gross Margin % Distribution

For the Asset Management industry and Financial Services sector, Brookfield Asset Management's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Brookfield Asset Management's Gross Margin % falls into.

Brookfield Asset Management Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Brookfield Asset Management's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	57	/	383
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(383 - 326)	/	383
	=	14.88 %

Brookfield Asset Management's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-12	/	160
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(160 - 172)	/	160
	=	-7.50 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Brookfield Asset Management (NYSE:BAM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Brookfield Asset Management had a gross margin of -7.50% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Brookfield Asset Management Gross Margin % Related Terms

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Brookfield Asset Management (Brookfield Asset Management) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Asset Management Ltd (NYSE:BAM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

RW5:Germany RW5:Germany BAM:Canada

Address

181 Bay Street, Suite 100, Brookfield Place, Toronto, ON, CAN, M5H 2T3

Website

https://www.brookfield.com

Brookfield Asset Management Ltd engages in providing alternative asset management services through an ownership interest in a leading global alternative asset management business. It offers a range of alternative investment products to investors around the world including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors.