Gross Margin % is calculated as gross profit divided by its revenue. Invesco's Gross Profit for the
three
months ended in Dec. 2023 was $485 Mil. Invesco's Revenue for the
three
months ended in Dec. 2023 was $1,413 Mil. Therefore, Invesco's Gross Margin % for the quarter that ended in Dec. 2023 was 34.33%.
Warning Sign:
Invesco Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Invesco's Gross Margin % or its related term are showing as below:
IVZ'
s Gross Margin % Range Over the Past 10 Years
Min: 35.08 Med: 41.17 Max: 42.13
Current: 35.08
During the past 13 years, the highestGross Margin % of Invesco was 42.13%. The lowest was 35.08%. And the median was 41.17%.
IVZ's Gross Margin % is ranked worse than 63.98% of 533
companies
in the Asset Management industry
Industry Median: 50.37
vs IVZ: 35.08
Invesco had a gross margin of 34.33% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Invesco was -2.40% per year.
Invesco Gross Margin % Historical Data
The historical data trend for Invesco'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.
Competitive Comparison of Invesco's Gross Margin %
For the Asset Management subindustry, Invesco'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.
Invesco's Gross Margin % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Invesco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Invesco'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.
Invesco (NYSE:IVZ) 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
Invesco had a gross margin of 34.33% 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.
Invesco Gross Margin % Related Terms
Thank you for viewing the detailed overview of Invesco's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Invesco provides investment-management services to retail (63% of managed assets) and institutional (37%) clients. At the end of October 2023, the firm had $1.451 trillion in assets under management spread among its equity (49% of AUM), balanced (4%), fixed-income (21%), alternative investment (12%), and money market (14%) operations. Passive products account for 35% of Invesco's total AUM, including 62% of the company's equity operations and 15% of its fixed-income platform. Invesco's U.S. retail business is one of the 10 largest nonproprietary fund complexes in the country. The firm also has a meaningful presence outside of North America, with 28% of its AUM sourced from Europe, Africa, and the Middle East (13%) and Asia (15%).
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