Legg Mason (Legg Mason) Gross Margin % : 33.27% (As of Jun. 2020)

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What is Legg Mason Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Legg Mason's Gross Profit for the three months ended in Jun. 2020 was $222 Mil. Legg Mason's Revenue for the three months ended in Jun. 2020 was $666 Mil. Therefore, Legg Mason's Gross Margin % for the quarter that ended in Jun. 2020 was 33.27%.

The historical rank and industry rank for Legg Mason's Gross Margin % or its related term are showing as below:

LM' s Gross Margin % Range Over the Past 10 Years
Min: 31.52 Med: 34.19 Max: 37.2
Current: 37.2

During the past 13 years, the highest Gross Margin % of Legg Mason was 37.20%. The lowest was 31.52%. And the median was 34.19%.

LM's Gross Margin % is not ranked
in the Asset Management industry.
Industry Median: 51.34 vs LM: 37.20

Legg Mason had a gross margin of 33.27% for the quarter that ended in Jun. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Legg Mason was 1.40% per year.

Legg Mason Gross Margin % Historical Data

The historical data trend for Legg Mason'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.

Legg Mason Gross Margin % Chart

Legg Mason Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Gross Margin %

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34.21

34.16

36.37

36.68

36.69

Legg Mason Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Gross Margin %	Get a 7-Day Free Trial															31.42	35.04	36.41	43.83	33.27

Competitive Comparison of Legg Mason's Gross Margin %

For the Asset Management subindustry, Legg Mason'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.

Legg Mason's Gross Margin % Distribution in the Asset Management Industry

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

* The bar in red indicates where Legg Mason's Gross Margin % falls into.

Legg Mason Gross Margin % Calculation

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

Legg Mason's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )	=	Gross Profit (A: Mar. 2020 )	/	Revenue (A: Mar. 2020 )
	=	1072	/	2922.125
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2922.125 - 1850.115)	/	2922.125
	=	36.69 %

Legg Mason's Gross Margin for the quarter that ended in Jun. 2020 is calculated as

Gross Margin % (Q: Jun. 2020 )	=	Gross Profit (Q: Jun. 2020 )	/	Revenue (Q: Jun. 2020 )
	=	221.6	/	666.186
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(666.186 - 444.557)	/	666.186
	=	33.27 %

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.

Legg Mason (NYSE:LM) 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

Legg Mason had a gross margin of 33.27% for the quarter that ended in Jun. 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.

Legg Mason Gross Margin % Related Terms

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Legg Mason (Legg Mason) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Legg Mason Inc (NYSE:LM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 International Drive, Baltimore, MD, USA, 21202-1099

Website

https://www.leggmason.com

Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.