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NDAQ (Nasdaq) Gross Margin % : 38.59% (As of Sep. 2024)


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What is Nasdaq Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nasdaq's Gross Profit for the three months ended in Sep. 2024 was $734 Mil. Nasdaq's Revenue for the three months ended in Sep. 2024 was $1,902 Mil. Therefore, Nasdaq's Gross Margin % for the quarter that ended in Sep. 2024 was 38.59%.


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

NDAQ' s Gross Margin % Range Over the Past 10 Years
Min: 34.52   Med: 38.97   Max: 41.99
Current: 41.61


During the past 13 years, the highest Gross Margin % of Nasdaq was 41.99%. The lowest was 34.52%. And the median was 38.97%.

NDAQ's Gross Margin % is ranked worse than
57.47% of 616 companies
in the Capital Markets industry
Industry Median: 49.23 vs NDAQ: 41.61

Nasdaq had a gross margin of 38.59% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nasdaq was 1.10% per year.


Nasdaq Gross Margin % Historical Data

The historical data trend for Nasdaq'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.

Nasdaq Gross Margin % Chart

Nasdaq Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.08 34.52 37.92 37.57 41.99

Nasdaq Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 42.25 44.93 41.88 41.52 38.59

Competitive Comparison of Nasdaq's Gross Margin %

For the Financial Data & Stock Exchanges subindustry, Nasdaq'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.


Nasdaq's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Nasdaq's Gross Margin % distribution charts can be found below:

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



Nasdaq Gross Margin % Calculation

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

Nasdaq'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 )
=2546 / 6064
=(Revenue - Cost of Goods Sold) / Revenue
=(6064 - 3518) / 6064
=41.99 %

Nasdaq's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=734 / 1902
=(Revenue - Cost of Goods Sold) / Revenue
=(1902 - 1168) / 1902
=38.59 %

* 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.


Nasdaq  (NAS:NDAQ) 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

Nasdaq had a gross margin of 38.59% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


Nasdaq Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nasdaq's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nasdaq Business Description

Address
151 W. 42nd Street, New York, NY, USA, 10036
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
Executives
John Zecca officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Bradley J Peterson officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
Adenza Parent, Lp director, 10 percent owner ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Bryan Everard Smith officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Borse Dubai Ltd 10 percent owner LEVEL 7, PRECINCT BLDG 5, GATE DISTRICT, PO BOX 506690, DUBAI INTL FINANCIAL CTR, DUBAI C0 00000
Spaht Paul Holden Jr. director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc director, 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison officer: Controller and Prin Acctg Ofcr ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby director 151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki director 255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman officer: Executive Vice President 1801 K STREET, N.W., WASHINGTON DC 20006
Michael R Splinter director
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Michelle Lynn Daly officer: Controller and Prin Acctg Ofcr 151 W. 42ND STREET, NEW YORK NY 10036
Brendan Brothers officer: Interim Head of AFC 151 W. 42ND STREET, NEW YORK NY 10036