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Air T Inc (NAS:AIRT)
Gross Profit
\$27.9 Mil (TTM As of Sep. 2016)

Air T Inc's gross profit for the three months ended in Sep. 2016 was \$6.8 Mil. Air T Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was \$27.9 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Air T Inc's gross profit for the three months ended in Sep. 2016 was \$6.8 Mil. Air T Inc's revenue for the three months ended in Sep. 2016 was \$38.5 Mil. Therefore, Air T Inc's Gross Margin for the quarter that ended in Sep. 2016 was 17.55%.

Air T Inc had a gross margin of 17.55% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Air T Inc was 20.91%. The lowest was 14.13%. And the median was 17.41%.

Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Air T Inc's Gross Profit for the fiscal year that ended in Mar. 2016 is calculated as

 Gross Profit (A: Mar. 2016 ) = Revenue - Cost of Goods Sold = 148.212 - 122.011 = 26.2

Air T Inc's Gross Profit for the quarter that ended in Sep. 2016 is calculated as

 Gross Profit (Q: Sep. 2016 ) = Revenue - Cost of Goods Sold = 38.523 - 31.764 = 6.8

Air T Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 was 10.308 (Dec. 2015 ) + 3.596 (Mar. 2016 ) + 7.264 (Jun. 2016 ) + 6.759 (Sep. 2016 ) = \$27.9 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Air T Inc's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

 Gross Margin (Q: Sep. 2016 ) = Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 ) = (Revenue - Cost of Goods Sold) / Revenue = 6.8 / 38.523 = 17.55 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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

Air T Inc had a gross margin of 17.55% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Air T Inc Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Gross_Profit 14.1 15.7 18.3 16.5 14.3 13.8 14.6 16.2 17.6 26.2

Air T Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Gross_Profit 3.4 6.5 5.2 2.5 2.9 9.4 10.3 3.6 7.3 6.8
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