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Air T Inc (NAS:AIRT)
Gross Profit
$30.5 Mil (TTM As of Jun. 2016)

Air T Inc's gross profit for the three months ended in Jun. 2016 was $7.3 Mil. Air T Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2016 was $30.5 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Air T Inc's gross profit for the three months ended in Jun. 2016 was $7.3 Mil. Air T Inc's revenue for the three months ended in Jun. 2016 was $30.5 Mil. Therefore, Air T Inc's Gross Margin for the quarter that ended in Jun. 2016 was 23.82%.

Air T Inc had a gross margin of 23.82% for the quarter that ended in Jun. 2016 => Competition eroding margins

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 Jun. 2016 is calculated as

Gross Profit (Q: Jun. 2016 )=Revenue - Cost of Goods Sold
=30.493 - 23.229
=7.3

Air T Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2016 was 9.366 (Sep. 2015 ) + 10.308 (Dec. 2015 ) + 3.596 (Mar. 2016 ) + 7.264 (Jun. 2016 ) = $30.5 Mil.

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

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

Gross Margin (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=7.3 / 30.493
=23.82 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 23.82% for the quarter that ended in Jun. 2016 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Air T Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
Gross_Profit 14.115.718.316.514.313.814.616.217.626.2

Air T Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Gross_Profit 4.43.46.55.22.52.99.410.33.67.3
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