CME Profit Margins
Gross, Operating & Net Margin Analysis for Cme Group Inc
Margin Quality
Unknown
Current Profit Margins
Gross Margin
0.0%
$0.00 gross profit
Operating Margin
64.1%
$3.93B operating income
Net Profit Margin
57.5%
$3.53B net income
5-Year Margin Trends
What Margins Indicate About CME
Business Quality
Lower gross margins may reflect commodity-like products or intense price competition in the Financials.
Operational Efficiency
Expanding operating margins show Cme Group Inc is improving operational leverage and cost management.
Profitability
Net margins above 15% demonstrate excellent profitability and suggest strong competitive positioning.
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 CME Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is CME's profit margin?
CME (Cme Group Inc) has a net profit margin of 57.5%, meaning the company keeps $0.575161906004796 in profit for every dollar of revenue. This represents a change from the previous year's net margin of 57.5%.
What is CME's gross margin?
CME'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 Financials.
What is CME's operating margin?
CME has an operating margin of 64.1%. Operating margin shows profitability after operating expenses but before interest and taxes. The 64.1% year-over-year improvement suggests better operational efficiency.
Are CME's profit margins good?
CME's margins are considered unknown. When evaluating margins, it's important to compare against Capital Markets peers, as different sectors have structurally different margin profiles.
How do profit margins affect CME stock?
Profit margins are a key indicator of CME's business quality and competitive position. High margins suggest strong competitive advantages and pricing power, which typically support premium valuations. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives CME's profit margins?
CME's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Capital Markets-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.