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Ashmore Group (LSE:ASHM) Gross Margin % : 114.23% (As of Jun. 2024)


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What is Ashmore Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ashmore Group's Gross Profit for the six months ended in Jun. 2024 was £109.2 Mil. Ashmore Group's Revenue for the six months ended in Jun. 2024 was £95.6 Mil. Therefore, Ashmore Group's Gross Margin % for the quarter that ended in Jun. 2024 was 114.23%.

Warning Sign:

Ashmore Group PLC gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

LSE:ASHM' s Gross Margin % Range Over the Past 10 Years
Min: 86.77   Med: 92.46   Max: 93.52
Current: 86.77


During the past 13 years, the highest Gross Margin % of Ashmore Group was 93.52%. The lowest was 86.77%. And the median was 92.46%.

LSE:ASHM's Gross Margin % is ranked better than
78.91% of 531 companies
in the Asset Management industry
Industry Median: 51.79 vs LSE:ASHM: 86.77

Ashmore Group had a gross margin of 114.23% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ashmore Group was -1.60% per year.


Ashmore Group Gross Margin % Historical Data

The historical data trend for Ashmore 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.

Ashmore Group Gross Margin % Chart

Ashmore Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 93.43 92.69 91.31 87.58 86.77

Ashmore Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Gross Margin % Get a 7-Day Free Trial 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 112.32 67.24 111.34 58.67 114.23

Competitive Comparison of Ashmore Group's Gross Margin %

For the Asset Management subindustry, Ashmore 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.


Ashmore Group's Gross Margin % Distribution in the Asset Management Industry

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

* The bar in red indicates where Ashmore Group's Gross Margin % falls into.



Ashmore Group Gross Margin % Calculation

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

Ashmore Group's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=164 / 189
=(Revenue - Cost of Goods Sold) / Revenue
=(189 - 25) / 189
=86.77 %

Ashmore Group's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=109.2 / 95.6
=(Revenue - Cost of Goods Sold) / Revenue
=(95.6 - -13.6) / 95.6
=114.23 %

* 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.


Ashmore Group  (LSE:ASHM) 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

Ashmore Group had a gross margin of 114.23% for the quarter that ended in Jun. 2024 => 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.


Ashmore Group Gross Margin % Related Terms

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Ashmore Group Business Description

Traded in Other Exchanges
Address
61 Aldwych, London, GBR, WC2B 4AE
Ashmore Group PLC is a value-oriented asset management firm that focuses its investments on emerging markets. It offers a diverse range of both traditional and alternative investment strategies to a global client base, including both institutional and retail investors. The company invests in sovereign debt instruments, currencies, corporate debt, equities, derivatives, private equity, real estate, distressed debt, and other special situations. The firm reports on changes in assets under management as the majority of its revenue is derived from management fees. The company also benefits from performance fees on its investments.

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