The Aarons Co's gross profit for the
three
months ended in Dec. 2023 was $269 Mil. The Aarons Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $1,119 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. The Aarons Co's gross profit for the
three
months ended in Dec. 2023 was $269 Mil. The Aarons Co's Revenue for the
three
months ended in Dec. 2023 was $529 Mil. Therefore, The Aarons Co's Gross Margin % for the quarter that ended in Dec. 2023 was 50.89%.
The Aarons Co had a gross margin of 50.89% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 7 years, the highestGross Margin % of The Aarons Co was 62.83%. The lowest was 51.65%. And the median was 60.54%.
Warning Sign:
The Aarons Co Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
The Aarons Co Gross Profit Historical Data
The historical data trend for The Aarons Co's Gross Profit 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 The Aarons Co's Gross Profit
For the Rental & Leasing Services subindustry, The Aarons Co's Gross Profit, along with its competitors' market caps and Gross Profit 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.
The Aarons Co's Gross Profit Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, The Aarons Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where The Aarons Co's Gross Profit falls into.
The Aarons Co Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
The Aarons Co's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,119 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
The Aarons Co (NYSE:AAN) Gross Profit 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
The Aarons Co had a gross margin of 50.89% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The Aarons Co Gross Profit Related Terms
Thank you for viewing the detailed overview of The Aarons Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
The Aarons Co (The Aarons Co) Business Description
The Aarons Co Inc is a specialty retailer which has developed a unique lease-to-own model. It serves the customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories at the best deal with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AAN has been successfully added to your 