ARESCAUTIOUS

ARES Gross Margin Analysis

96.1%

Higher than 84% of Financial Services sector peers

Updated 2556h ago·SEC filings & market data

Key Takeaway

Ares Management's gross margin of 96.1% means that for every dollar of revenue, the company retains $0.961 after deducting the direct costs of producing its services — a very high retention rate typical of asset management firms.

Sector Performance

84th percentile

ARES

96.1%

Sector Median

68.5%

Sector Avg

69.1%

📊

Deep Analysis

This figure places the company well above the Financial Services sector median of 78.9%, ranking in the 81st percentile among peers. No trend data is available because the year-over-year and quarter-over-quarter changes are both listed as N/A, and only one historical value (96.1%) is provided. Without trend information, the combination of an extremely high current level and no directional movement neither signals a recent improvement nor a deterioration, making the gross margin a low-risk factor on its own. This metric supports the overall NEUTRAL verdict: the superior margin shows strong cost efficiency, but the lack of trend data prevents drawing any conclusion about momentum or change in business fundamentals.

Frequently Asked Questions

What does the Gross Margin tell investors about ARES?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ARES's Gross Margin compare to its sector?

ARES's Gross Margin of 96.1% compares to a Financial Services sector median of 68.5%, placing it in the 84th percentile.

Who are ARES's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), CACC (63.0%), HDB (58.4%), COF (57.8%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.