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Arthur J. Gallagher (Arthur J. Gallagher) Profitability Rank

: 8 (As of Dec. 2023)
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Arthur J. Gallagher has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Arthur J. Gallagher's Operating Margin % for the quarter that ended in Dec. 2023 was 13.56%. As of today, Arthur J. Gallagher's Piotroski F-Score is 5.


Competitive Comparison

For the Insurance Brokers subindustry, Arthur J. Gallagher's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


Arthur J. Gallagher Profitability Rank Distribution

For the Insurance industry and Financial Services sector, Arthur J. Gallagher's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Arthur J. Gallagher's Profitability Rank falls into.



Arthur J. Gallagher Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Arthur J. Gallagher has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Arthur J. Gallagher's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=330.5 / 2437.8
=13.56 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Arthur J. Gallagher has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Arthur J. Gallagher & Co operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Arthur J. Gallagher Profitability Rank Related Terms

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Arthur J. Gallagher (Arthur J. Gallagher) Business Description

Traded in Other Exchanges
Address
2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissioning from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.
Executives
Douglas K Howell officer: Vice President and Chief ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William F Ziebell officer: VICE PRESIDENT 2 PIERCE PLACE, ITASCA IL 60143
Christopher E Mead officer: VICE PRESIDENT 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Joel D Cavaness officer: Vice President 2 PIERCE PLACE, ITASCA IL 60143
David S Johnson director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Walter D. Bay officer: VICE PRESIDENT, SECRETARY AND 1011 ELM STREET, WINNETKA IL 60093
Richard C Cary officer: Controller C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Sherry S Barrat director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Susan E Mcgrath other: Vice President C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Kay W Mccurdy director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Patrick Murphy Gallagher officer: Vice President 2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Scott R Hudson officer: CORPORATE VP C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William L Bax director TWO PIERCE PLACE, C/O ARTHUR J. GALLAGHER & CO., ITASCA IL 60143
Mark H. Bloom officer: Vice President 8200 JONES BRANCH DRIVE, MCLEAN VA 22102
Gallagher J Patrick Jr director, officer: President & CEO C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143

Arthur J. Gallagher (Arthur J. Gallagher) Headlines