AJG Profit Margins
Gross, Operating & Net Margin Analysis for Arthur J Gallagher & Co
Margin Quality
Unknown
Current Profit Margins
Gross Margin
0.0%
$0.00 gross profit
Operating Margin
0.0%
$0.00 operating income
Net Profit Margin
12.7%
$1.47B net income
5-Year Margin Trends
What Margins Indicate About AJG
Business Quality
Lower gross margins may reflect commodity-like products or intense price competition in the Financial Services.
Operational Efficiency
Stable operating margins suggest consistent execution and predictable business operations.
Profitability
Net margins in the 5-15% range are solid and typical for many profitable businesses.
Investment Implications
Mixed margin trends require deeper analysis to understand underlying business dynamics and sustainability.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze AJG Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is AJG's profit margin?
AJG (Arthur J Gallagher & Co) has a net profit margin of 12.7%, meaning the company keeps $0.12725337302789294 in profit for every dollar of revenue. This represents an improvement from the previous year's net margin of 9.6%.
What is AJG's gross margin?
AJG's gross margin is 0.0%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A lower gross margin like this reflects the competitive dynamics of the Financial Services.
What is AJG's operating margin?
AJG has an operating margin of 0.0%. Operating margin shows profitability after operating expenses but before interest and taxes. This metric helps investors understand how efficiently Arthur J Gallagher & Co manages its operations.
Are AJG's profit margins good?
AJG's margins are considered unknown. When evaluating margins, it's important to compare against Insurance Brokers peers, as different sectors have structurally different margin profiles.
How do profit margins affect AJG stock?
Profit margins are a key indicator of AJG's business quality and competitive position. The current margins should be evaluated alongside growth rates and return on capital to assess overall business quality. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives AJG's profit margins?
AJG's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Insurance Brokers-specific dynamics, and management execution. Monitoring margin trends helps identify improving or deteriorating business fundamentals.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.