BACNEUTRAL

Gross Margin

95.6%

Higher than 84% of Financial Services sector peers

Updated 1928h ago

Sector Performance

84th percentile

BAC

95.6%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Bank of America's gross margin of 95.6% means that for every dollar of revenue, the company keeps roughly 95.6 cents after deducting the direct costs of delivering its financial services — a metric that measures core profitability.

This figure sits well above the Financial Services sector median of 76.6%, placing BAC in the 80th percentile among its peers, indicating stronger cost efficiency than most competitors. The trend direction for gross margin is marked as N/A, with no year-over-year or quarter-over-quarter changes available to assess recent movement. The combination of an exceptionally high margin level with no trend data limits the ability to gauge momentum, but the current level alone suggests a low risk of margin erosion relative to peers. This performance supports the overall BULLISH verdict, as a gross margin in the top 20% of the sector strengthens the case for the company's profitability advantage.

Frequently Asked Questions

What does the Gross Margin tell investors about BAC?

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 BAC's Gross Margin compare to its sector?

BAC's Gross Margin of 95.6% compares to a Financial Services sector median of 68.5%, placing it in the 84th percentile.

Who are BAC's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), HDB (58.4%), COF (57.8%).

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.