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TROW (T. Rowe Price Group) Gross Margin % : 52.68% (As of Sep. 2024)


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What is T. Rowe Price Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. T. Rowe Price Group's Gross Profit for the three months ended in Sep. 2024 was $941 Mil. T. Rowe Price Group's Revenue for the three months ended in Sep. 2024 was $1,786 Mil. Therefore, T. Rowe Price Group's Gross Margin % for the quarter that ended in Sep. 2024 was 52.68%.

Warning Sign:

T. Rowe Price Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


The historical rank and industry rank for T. Rowe Price Group's Gross Margin % or its related term are showing as below:

TROW' s Gross Margin % Range Over the Past 10 Years
Min: 49.63   Med: 57.7   Max: 63
Current: 50.63


During the past 13 years, the highest Gross Margin % of T. Rowe Price Group was 63.00%. The lowest was 49.63%. And the median was 57.70%.

TROW's Gross Margin % is ranked worse than
51.61% of 529 companies
in the Asset Management industry
Industry Median: 51.8 vs TROW: 50.63

T. Rowe Price Group had a gross margin of 52.68% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for T. Rowe Price Group was -2.50% per year.


T. Rowe Price Group Gross Margin % Historical Data

The historical data trend for T. Rowe Price 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.

T. Rowe Price Group Gross Margin % Chart

T. Rowe Price Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.55 57.85 60.98 54.96 49.63

T. Rowe Price Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 53.05 46.46 50.53 52.59 52.68

Competitive Comparison of T. Rowe Price Group's Gross Margin %

For the Asset Management subindustry, T. Rowe Price 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.


T. Rowe Price Group's Gross Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where T. Rowe Price Group's Gross Margin % falls into.



T. Rowe Price Group Gross Margin % Calculation

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

T. Rowe Price Group'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 )
=3206.1 / 6460.5
=(Revenue - Cost of Goods Sold) / Revenue
=(6460.5 - 3254.4) / 6460.5
=49.63 %

T. Rowe Price Group's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=940.7 / 1785.6
=(Revenue - Cost of Goods Sold) / Revenue
=(1785.6 - 844.9) / 1785.6
=52.68 %

* 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.


T. Rowe Price Group  (NAS:TROW) 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

T. Rowe Price Group had a gross margin of 52.68% for the quarter that ended in Sep. 2024 => 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.


T. Rowe Price Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of T. Rowe Price Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


T. Rowe Price Group Business Description

Address
100 East Pratt Street, Baltimore, MD, USA, 21202
T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load us and international stock, hybrid, bond, and money market funds. At the end of August 2024, the firm had $1.612 trillion in managed assets, composed of equity (51%), balanced (34%), fixed-income and money market (12%), and alternative (3%) offerings. Approximately two thirds of managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a us-based asset manager, deriving less than 10% of its AUM from overseas.
Executives
Jessica M Hiebler officer: Principal Accounting Officer 100 E. PRATT STREET, BALTIMORE MD 21202
Thomson Andrew Justin Mackenzie officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Robert F. Maclellan director 100 E. PRATT STREET, BALTIMORE MD 21202
Hrabowski Freeman A Iii director C/O BALTIMORE GAS AND ELECTRIC COMPANY, P.O. BOX 1475, BALTIMORE MD 21203
Higginbotham Robert C.t. officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
William P Donnelly director C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Andrew C. Mccormick officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Cynthia F Smith director 100 E. PRATT STREET, BALTIMORE MD 21202
William J Stromberg officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Kimberly H Johnson officer: COO and VP C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Joshua B Nelson officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Glenn R August director, officer: Vice President C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Eileen P Rominger director 100 E. PRATT STREET, BALTIMORE MD 21202
Sebastien Page officer: Vice President 100 E. PRATT STREET, BALTIMORE MD 21202
Jennifer B Dardis other: CFO and VP 100 E. PRATT STREET, BALTIMORE MD 21202