Gross Margin % is calculated as gross profit divided by its revenue. T. Rowe Price Group's Gross Profit for the
three
months ended in Dec. 2023 was $763 Mil. T. Rowe Price Group's Revenue for the
three
months ended in Dec. 2023 was $1,642 Mil. Therefore, T. Rowe Price Group's Gross Margin % for the quarter that ended in Dec. 2023 was 46.46%.
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: 49.63
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 50.56% of 532
companies
in the Asset Management industry
Industry Median: 50.11
vs TROW: 49.63
T. Rowe Price Group had a gross margin of 46.46% for the quarter that ended in Dec. 2023 => 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 Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
57.55
57.85
60.98
54.96
49.63
T. Rowe Price Group Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
45.84
48.16
50.71
53.05
46.46
Competitive Comparison
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 Gross Margin % Distribution
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 46.46% for the quarter that ended in Dec. 2023 => 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 (T. Rowe Price Group) Business Description
T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's 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 U.S.-based asset manager, deriving just over 9% of its AUM from overseas.
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