Gross Margin % is calculated as gross profit divided by its revenue. Federated Hermes's Gross Profit for the
three
months ended in Dec. 2023 was $264 Mil. Federated Hermes's Revenue for the
three
months ended in Dec. 2023 was $391 Mil. Therefore, Federated Hermes's Gross Margin % for the quarter that ended in Dec. 2023 was 67.43%.
Warning Sign:
Federated Hermes Inc gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Federated Hermes's Gross Margin % or its related term are showing as below:
FHI'
s Gross Margin % Range Over the Past 10 Years
Min: 59.05 Med: 66.74 Max: 74.07
Current: 65
During the past 13 years, the highestGross Margin % of Federated Hermes was 74.07%. The lowest was 59.05%. And the median was 66.74%.
FHI's Gross Margin % is ranked better than 61.35% of 533
companies
in the Asset Management industry
Industry Median: 50.22
vs FHI: 65.00
Federated Hermes had a gross margin of 67.43% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Federated Hermes was -1.40% per year.
Federated Hermes Gross Margin % Historical Data
The historical data trend for Federated Hermes'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.
For the Asset Management subindustry, Federated Hermes'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.
Federated Hermes Gross Margin % Distribution
For the Asset Management industry and Financial Services sector, Federated Hermes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes'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.
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 67.43% 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.
Federated Hermes Gross Margin % Related Terms
Thank you for viewing the detailed overview of Federated Hermes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Federated Hermes (Federated Hermes) Business Description
Federated provides asset management services for institutional and individual investors. The company had $715.2 billion in managed assets at the end of September 2023, composed of equity (11%), multi-asset (less than 1%), fixed-income (13%), alternative (3%), and money market (73%) funds. That said, the firm's cash-management operations are expected to generate around 46% of Federated's revenue this year, compared with 31%, 12%, and 11%, respectively, for the firm's equity, fixed-income, and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (63% of AUM), institutional investors (27%), and international clients (10%).
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FHI has been successfully added to your 