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Federated Hermes Gross Margin %

: 62.00% (As of Dec. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Federated Hermes's Gross Profit for the three months ended in Dec. 2020 was $226 Mil. Federated Hermes's Revenue for the three months ended in Dec. 2020 was $364 Mil. Therefore, Federated Hermes's Gross Margin % for the quarter that ended in Dec. 2020 was 62.00%.

Warning Sign:

Federated Hermes Inc gross margin has been in long term decline. The average rate of decline per year is -1.9%.


NYSE:FHI' s Gross Margin % Range Over the Past 10 Years
Min: 65.24   Med: 69.2   Max: 74.07
Current: 65.24

65.24
74.07

During the past 13 years, the highest Gross Margin % of Federated Hermes was 74.07%. The lowest was 65.24%. And the median was 69.20%.

NYSE:FHI's Gross Margin % is ranked higher than
64% of the 463 Companies
in the Asset Management industry.

( Industry Median: 49.12 vs. NYSE:FHI: 65.24 )

Federated Hermes had a gross margin of 62.00% for the quarter that ended in Dec. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Federated Hermes was -1.90% per year.


Federated Hermes Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Federated Hermes Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.07 73.78 68.76 66.68 65.24

Federated Hermes Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 68.88 67.89 65.74 65.38 62.00

Competitive Comparison
* 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.


Federated Hermes Gross Margin % Distribution

* The bar in red indicates where Federated Hermes's Gross Margin % falls into.



Federated Hermes Gross Margin % Calculation

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

Federated Hermes's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=944.9 / 1448.268
=(Revenue - Cost of Goods Sold) / Revenue
=(1448.268 - 503.4) / 1448.268
=65.24 %

Federated Hermes's Gross Margin for the quarter that ended in Dec. 2020 is calculated as


Gross Margin % (Q: Dec. 2020 )=Gross Profit (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=225.6 / 363.918
=(Revenue - Cost of Goods Sold) / Revenue
=(363.918 - 138.296) / 363.918
=62.00 %

* All numbers are in millions except for per share data and ratio. All numbers 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.


Federated Hermes  (NYSE:FHI) 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

Federated Hermes had a gross margin of 62.00% for the quarter that ended in Dec. 2020 => 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.


Federated Hermes Gross Margin % Related Terms


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