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Air T Inc (NAS:AIRT)
Gross Profit
$26.2 Mil (TTM As of Mar. 2016)

Air T Inc's gross profit for the three months ended in Mar. 2016 was $3.6 Mil. Air T Inc's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $26.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Air T Inc's gross profit for the three months ended in Mar. 2016 was $3.6 Mil. Air T Inc's revenue for the three months ended in Mar. 2016 was $34.6 Mil. Therefore, Air T Inc's Gross Margin for the quarter that ended in Mar. 2016 was 10.40%.

Air T Inc had a gross margin of 10.40% for the quarter that ended in Mar. 2016 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Air T Inc was 20.91%. The lowest was 15.25%. 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 Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=34.581 - 30.985
=3.6

Air T Inc Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 2.931 (Jun. 2015 ) + 9.366 (Sep. 2015 ) + 10.308 (Dec. 2015 ) + 3.596 (Mar. 2016 ) = $26.2 Mil.

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

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

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=3.6 / 34.581
=10.40 %

* 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 10.40% for the quarter that ended in Mar. 2016 => No sustainable competitive advantage


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 14.115.718.316.514.313.715.716.217.626.2

Air T Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 4.84.43.46.55.22.52.99.410.33.6
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