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Investment Technology Group (Investment Technology Group) Gross Margin % : 62.54% (As of Sep. 2018)


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What is Investment Technology Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Investment Technology Group's Gross Profit for the three months ended in Sep. 2018 was $75.5 Mil. Investment Technology Group's Revenue for the three months ended in Sep. 2018 was $120.8 Mil. Therefore, Investment Technology Group's Gross Margin % for the quarter that ended in Sep. 2018 was 62.54%.


The historical rank and industry rank for Investment Technology Group's Gross Margin % or its related term are showing as below:


ITG's Gross Margin % is not ranked *
in the Capital Markets industry.
Industry Median: 48.655
* Ranked among companies with meaningful Gross Margin % only.

Investment Technology Group had a gross margin of 62.54% for the quarter that ended in Sep. 2018 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Investment Technology Group was 0.00% per year.


Investment Technology Group Gross Margin % Historical Data

The historical data trend for Investment Technology Group'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.

Investment Technology Group Gross Margin % Chart

Investment Technology Group Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
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Investment Technology Group Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 62.54

Competitive Comparison of Investment Technology Group's Gross Margin %

For the Capital Markets subindustry, Investment Technology Group'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.


Investment Technology Group's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Investment Technology Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Investment Technology Group's Gross Margin % falls into.



Investment Technology Group Gross Margin % Calculation

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

Investment Technology Group's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=483.7 / 483.694
=(Revenue - Cost of Goods Sold) / Revenue
=(483.694 - 0) / 483.694
=N/A %

Investment Technology Group's Gross Margin for the quarter that ended in Sep. 2018 is calculated as


Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=75.5 / 120.769
=(Revenue - Cost of Goods Sold) / Revenue
=(120.769 - 45.244) / 120.769
=62.54 %

* 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.

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.


Investment Technology Group  (NYSE:ITG) 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

Investment Technology Group had a gross margin of 62.54% for the quarter that ended in Sep. 2018 => Durable 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.


Investment Technology Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Investment Technology Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Investment Technology Group (Investment Technology Group) Business Description

Traded in Other Exchanges
N/A
Address
165 Broadway, One Liberty Plaza, New York, NY, USA, 10006
Investment Technology Group Inc is a United States-based brokerage and financial technology company. The company provides a wide range of products and services, including electronic brokerage, research, sales and trading, and platforms and analytics. The company generates over half of its revenue from electronic brokerage, research, and sales and trading. The company has a global presence, with a network of offices in North America, Europe, and Asia-Pacific. Its business is categorized into four reporting segments: U.S. operations, Canadian operations, European operations, and Asia-Pacific operations. The U.S. is its largest market.
Executives
Lee Shavel director ONE LIBERTY PLAZA, NEW YORK NY 10006
Brian G. Cartwright director 3760 KILROY AIRPORT WAY SUITE 300, LONG BEACH CA 90806
R Jarrett Lilien director 250 WEST 34TH STREET, 3RD FLOOR, C/O WISDOMTREE, INC., NEW YORK NY 10119
Kevin J Lynch director 201 POST STREET, SUITE 1000, SAN FRANCISCO CA 94108
T Kelley Millet director ITG INC., ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
Christopher V Dodds director ITG INC., ONE LIBERTY PLAZA, 165 BROADWAY, NEW YORK NY 10006
D. E. Shaw & Co, L.p. 10 percent owner, other: See footnotes 1 and 2 1166 AVENUE OF THE AMERICAS, NINTH FLOOR, NEW YORK NY 10036
David E Shaw 10 percent owner, other: See footnotes 1 and 2 120 WEST FORTY-FIFTH STREET, 39TH FLOOR, NEW YORK NY 10036
D. E. Shaw & Co, L.l.c. 10 percent owner, other: See footnotes 1 and 2 1166 AVENUE OF THE AMERICAS, NINTH FLOOR, NEW YORK NY 10036
D. E. Shaw Laminar Portfolios, L.l.c. 10 percent owner, other: See footnotes 1 and 2. 120 WEST FORTY-FIFTH STREET, 39TH FLOOR, NEW YORK NY 10036
William I Jacobs director C/O MASTERCARD INTERNATIONAL INC, 2000 PURCHASE ST, PUCHASE NY 10577-2509
Killian Raymond L Jr director C/O INVESTMENT TECHNOLOGY GROUP INC, 900 THIRD AVE, NEW YORK NY 10022
Mark A Wolfson director C/O ARBOR INVESTORS, 2460 SAND HILL RD STE 300, MENLO PARK CA 94025

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