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 highestGross 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.
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.
* 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 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.
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