Ares Management (Ares Management) Gross Margin % : 73.78% (As of Dec. 2023)

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What is Ares Management Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ares Management's Gross Profit for the three months ended in Dec. 2023 was $1,100 Mil. Ares Management's Revenue for the three months ended in Dec. 2023 was $1,491 Mil. Therefore, Ares Management's Gross Margin % for the quarter that ended in Dec. 2023 was 73.78%.

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

ARES' s Gross Margin % Range Over the Past 10 Years
Min: 55.83 Med: 68.53 Max: 78.21
Current: 70.19

During the past 13 years, the highest Gross Margin % of Ares Management was 78.21%. The lowest was 55.83%. And the median was 68.53%.

ARES's Gross Margin % is ranked better than
65.79% of 532 companies
in the Asset Management industry
Industry Median: 51.34 vs ARES: 70.19

Ares Management had a gross margin of 73.78% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ares Management was 2.30% per year.

Ares Management Gross Margin % Historical Data

The historical data trend for Ares Management'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.

Ares Management Gross Margin % Chart

Ares Management Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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70.21

63.98

75.56

59.82

70.19

Ares Management Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															71.17	65.72	74.37	63.59	73.78

Competitive Comparison of Ares Management's Gross Margin %

For the Asset Management subindustry, Ares Management'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.

Ares Management's Gross Margin % Distribution in the Asset Management Industry

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

* The bar in red indicates where Ares Management's Gross Margin % falls into.

Ares Management Gross Margin % Calculation

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

Ares Management'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 )
	=	3500.3	/	4986.978
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4986.978 - 1486.698)	/	4986.978
	=	70.19 %

Ares Management's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1100	/	1490.859
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1490.859 - 390.865)	/	1490.859
	=	73.78 %

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.

Ares Management (NYSE:ARES) 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

Ares Management had a gross margin of 73.78% 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.

Ares Management Gross Margin % Related Terms

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Ares Management (Ares Management) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Ares Management Corp (NYSE:ARES) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

0QN:Germany

Address

2000 Avenue of the Stars, 12th Floor, Los Angeles, CA, USA, 90067

Website

https://www.aresmgmt.com

Ares Management Corp is an asset management company based in the United States. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Estate Group, Secondaries Group, and Strategic Initiatives. Its Credit Group generates maximum revenue, and manages credit strategies across the liquid and illiquid spectrum. Private Equity Group manages investment strategies categorized as corporate private equity, infrastructure and power, and special opportunities, Real Estate Group is engaged in managing real estate equity and debt strategies. The Secondary Solutions Group invests in secondary markets across a range of asset class including private equity, real estate, and infrastructure.

Executives

Michael J Arougheti	director, officer: Co-Founder & President	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Bennett Rosenthal	director, officer: Co-Founder & Senior Partner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
David B Kaplan	director, officer: Co-Founder & Senior Partner	1999 AVENUE OF THE STARS, SUITE 1900, LOS ANGELES CA 90067
Ryan Berry	officer: Ptr, Chief Mktg. & Strat. Off.	C/O ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
R. Kipp Deveer	officer: Partner	245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167
Ashish Bhutani	director
Judy D. Olian	director	2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Aghili Naseem Sagati	officer: General Counsel	2000 AVENUE OF THE STARS, LOS ANGELES CA 90067
Bush Antoinette Cook	director	NORTHPOINT TECHNOLOGY, 444 N CAPITOL STREET NW STE 645, WASHINGTON DC 20001
Antony P Ressler	director, officer: Chairman, CEO, Co-Founder	1999 AVENUE OF THE STARS, SUITE 1900, LOS ANGELES CA 90067
Eileen Naughton	director	C/O GOOGLE INC., 76 NINTH AVENUE, 4TH FLOOR, NEW YORK NY 10011
Ares Management Corp	officer: Chief Financial Officer	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Jarrod Phillips	officer: Chief Financial Officer	C/O ARES MANAGEMENT LLC, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 100167
Michael R Mcferran	officer: EVP, CFO & Treasurer	555 CALIFORNIA STREET, 50TH FLOOR, SAN FRANCISCO CA 94104
Michael D Weiner	officer: EVP, CLO & Secretary	10250 CONSTELLATION BLVD, SUITE 2900, LOS ANGELES CA 90067-6229