Affiliated Managers Group (Affiliated Managers Group) Gross Margin %

: 51.35% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Affiliated Managers Group's Gross Profit for the three months ended in Dec. 2023 was $258 Mil. Affiliated Managers Group's Revenue for the three months ended in Dec. 2023 was $503 Mil. Therefore, Affiliated Managers Group's Gross Margin % for the quarter that ended in Dec. 2023 was 51.35%.

Warning Sign:

Affiliated Managers Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

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

AMG' s Gross Margin % Range Over the Past 10 Years
Min: 54 Med: 57.52 Max: 58.96
Current: 56.22

During the past 13 years, the highest Gross Margin % of Affiliated Managers Group was 58.96%. The lowest was 54.00%. And the median was 57.52%.

AMG's Gross Margin % is ranked better than
55.35% of 533 companies
in the Asset Management industry
Industry Median: 50.22 vs AMG: 56.22

Affiliated Managers Group had a gross margin of 51.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Affiliated Managers Group was -1.20% per year.

Affiliated Managers Group Gross Margin % Historical Data

The historical data trend for Affiliated Managers 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.

Affiliated Managers Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

57.89

56.41

56.60

54.00

55.90

Affiliated Managers Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																49.14	58.01	55.34	59.67	51.35

Competitive Comparison

For the Asset Management subindustry, Affiliated Managers 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.

Affiliated Managers Group Gross Margin % Distribution

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

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

Affiliated Managers Group Gross Margin % Calculation

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

Affiliated Managers 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 )
	=	1150.3	/	2057.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2057.8 - 907.5)	/	2057.8
	=	55.90 %

Affiliated Managers 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 )
	=	258.1	/	502.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(502.6 - 244.5)	/	502.6
	=	51.35 %

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.

Affiliated Managers Group (NYSE:AMG) 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

Affiliated Managers Group had a gross margin of 51.35% 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.

Affiliated Managers Group Gross Margin % Related Terms

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Affiliated Managers Group (Affiliated Managers Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Affiliated Managers Group Inc (NYSE:AMG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

777 South Flagler Drive, West Palm Beach, FL, USA, 33401

Website

https://www.amg.com

Affiliated Managers Group offers investment strategies to investors through its network of affiliates. The firm typically buys a majority interest in small to midsize boutique asset managers, receiving a fixed percentage of revenue from these firms in return. Affiliates operate independently, with AMG providing strategic, operational, and technology support, as well as global distribution. At the end of September 2023, AMG's affiliate network—which includes firms like AQR Capital Management, and Pantheon in alternative assets and other products (which accounted for 36% of AUM), Artemis, Genesis, Harding Loevner, and Tweedy Browne in global and emerging-market equities (27%) and Frontier, River Road, Parnassus, and Yacktman in U.S. equities (21%)—had $635.8 billion in managed assets.

Executives

Loren M Starr	director
Reuben Iii Jeffery	director	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DR., STE. 1401 E TOWER, WEST PALM BEACH FL 33401
Tracy P. Palandjian	director	SOCIAL FINANCE, INC., 200 STATE STREET, 14TH FLOOR, BOSTON MA 02109
John R Erickson	officer: Head of Affiliate Engagement	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Rizwan M Jamal	officer: Head of Affiliate Investments	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Jay C. Horgen	director, officer: President and CEO	AFFILIATED MANAGERS GROUP, INC., 777 S. FLAGLER DR., SUITE 1201 E. TOWER, WEST PALM BEACH FL 33401
Dwight D. Churchill	director	44 GAGE ROAD, BEDFORD NH 03110
David Christopher Ryan	director	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Matos Rodriguez Felix V.	director	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Tracy A Atkinson	director	MFS INVESTMENT MANAGEMENT, 500 BOYLSTON ST., BOSTON MA 02116
Hugh Cutler	officer: EVP, Global Distribution	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Thomas M Wojcik	officer: Chief Financial Officer	C/O AFFILIATED MANAGERS GROUP, INC., 777 SOUTH FLAGLER DRIVE, WEST PALM BEACH FL 33401
Samuel T Byrne	director	CROSSHARBOR CAPITAL PARTNERS, ONE BOSTON PLACE, SUITE 2300, BOSTON MA 02108
Sean M Healey	director, officer: Executive Chairman	C/O AFFILIATED MANAGERS GROUP INC, 777 S. FLAGLER DR., SUITE 1201 E. TOWER, WEST PALM BEACH FL 33401
David M. Billings	officer: General Counsel and Secretary	C/O AFFILIATED MANAGERS GROUP, INC., 600 HALE ST., PO BOX 1000, PRIDES CROSSING MA 01965