Arabia Investments Holding (CAI:AIH) Gross Margin % : 30.18% (As of Mar. 2020)

Arabia Investments Holding Gross Margin % Chart

Arabia Investments Holding Quarterly Data
	Dec10	Dec11	Dec12	Mar14	Jun14	Sep14	Mar15	Jun15	Sep15	Mar16	Jun16	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
Gross Margin %	Get a 7-Day Free Trial															21.02	16.18	29.44	29.51	30.18

Competitive Comparison of Arabia Investments Holding's Gross Margin %

For the Asset Management subindustry, Arabia Investments Holding'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.

Arabia Investments Holding's Gross Margin % Distribution in the Asset Management Industry

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

* The bar in red indicates where Arabia Investments Holding's Gross Margin % falls into.

Arabia Investments Holding Gross Margin % Calculation

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

Arabia Investments Holding's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Arabia Investments Holding's Gross Margin for the quarter that ended in Mar. 2020 is calculated as

* 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.

Arabia Investments Holding  (CAI:AIH) 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

Arabia Investments Holding had a gross margin of 30.18% for the quarter that ended in Mar. 2020 => Competition eroding margins

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.

Arabia Investments Holding Gross Margin % Related Terms

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Arabia Investments Holding (CAI:AIH) Business Description