Argo Group (LSE:ARGO) Gross Margin % : 37.48% (As of Dec. 2023)

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What is Argo Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Argo Group's Gross Profit for the six months ended in Dec. 2023 was £0.46 Mil. Argo Group's Revenue for the six months ended in Dec. 2023 was £1.21 Mil. Therefore, Argo Group's Gross Margin % for the quarter that ended in Dec. 2023 was 37.48%.

Warning Sign:

Argo Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -27.7%.

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

LSE:ARGO' s Gross Margin % Range Over the Past 10 Years
Min: 2.06 Med: 48.65 Max: 66.64
Current: 32.1

During the past 13 years, the highest Gross Margin % of Argo Group was 66.64%. The lowest was 2.06%. And the median was 48.65%.

LSE:ARGO's Gross Margin % is ranked worse than
67.48% of 532 companies
in the Asset Management industry
Industry Median: 51.905 vs LSE:ARGO: 32.10

Argo Group had a gross margin of 37.48% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Argo Group was -27.70% per year.

Argo Group Gross Margin % Historical Data

The historical data trend for Argo 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.

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Argo Group Gross Margin % Chart

Argo Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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47.52

42.93

55.90

2.06

32.10

Argo Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															70.45	-38.46	42.11	26.65	37.48

Competitive Comparison of Argo Group's Gross Margin %

For the Asset Management subindustry, Argo 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.

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

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

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

Argo Group Gross Margin % Calculation

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

Argo Group'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 )
	=	0.8	/	2.408
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.408 - 1.635)	/	2.408
	=	32.10 %

Argo Group'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 )
	=	0.5	/	1.214
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.214 - 0.759)	/	1.214
	=	37.48 %

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.

Argo Group (LSE:ARGO) 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

Argo Group had a gross margin of 37.48% for the quarter that ended in Dec. 2023 => 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.

Argo Group Gross Margin % Related Terms

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Argo Group (LSE:ARGO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Argo Group Ltd (LSE:ARGO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

IW6:Germany

Address

24-25 New Bond Street, 2nd Floor, London, GBR, W1S 2RR

Website

https://www.argogrouplimited.com

Argo Group Ltd is an investment management company that invests in multi-strategy investment in emerging markets. Its investment objective is to provide investors with absolute returns on the funds. The group aims to deliver low volatility, double-digit absolute returns through a fundamental, bottom-up investment approach. The Group's funds invest in performing fixed-income securities, both sovereign and corporate, distressed debt, and real estate. The company operates as a single asset management business.