Arthur J. Gallagher (Arthur J. Gallagher) Gross Profit : $4,245 Mil (TTM As of Dec. 2023)

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What is Arthur J. Gallagher Gross Profit?

Arthur J. Gallagher's gross profit for the three months ended in Dec. 2023 was $971 Mil. Arthur J. Gallagher's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $4,245 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Arthur J. Gallagher's gross profit for the three months ended in Dec. 2023 was $971 Mil. Arthur J. Gallagher's Revenue for the three months ended in Dec. 2023 was $2,438 Mil. Therefore, Arthur J. Gallagher's Gross Margin % for the quarter that ended in Dec. 2023 was 39.82%.

Arthur J. Gallagher had a gross margin of 39.82% for the quarter that ended in Dec. 2023 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of Arthur J. Gallagher was 42.15%. The lowest was 27.64%. And the median was 31.21%.

Arthur J. Gallagher Gross Profit Historical Data

The historical data trend for Arthur J. Gallagher's Gross Profit 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.

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Arthur J. Gallagher Gross Profit Chart

Arthur J. Gallagher Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Profit

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2,288.80

2,509.10

2,975.70

3,597.40

4,245.30

Arthur J. Gallagher Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Profit	Get a 7-Day Free Trial															823.20	1,257.10	988.80	1,028.60	970.80

Competitive Comparison of Arthur J. Gallagher's Gross Profit

For the Insurance Brokers subindustry, Arthur J. Gallagher's Gross Profit, along with its competitors' market caps and Gross Profit 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's Gross Profit Distribution in the Insurance Industry

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

* The bar in red indicates where Arthur J. Gallagher's Gross Profit falls into.

Arthur J. Gallagher Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Arthur J. Gallagher's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	10071.9	-	5826.6
	=	4,245

Arthur J. Gallagher's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	2437.8	-	1467
	=	971

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,245 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Arthur J. Gallagher'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 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	971	/	2437.8
	=	39.82 %

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.

Arthur J. Gallagher (NYSE:AJG) Gross Profit 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

Arthur J. Gallagher had a gross margin of 39.82% for the quarter that ended in Dec. 2023 => Competition eroding margins

Arthur J. Gallagher Gross Profit Related Terms

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

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arthur J. Gallagher & Co (NYSE:AJG) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

AJG:Mexico GAH:Germany GAH:Germany

Address

2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050

Website

https://investor.ajg.com

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