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Air T Inc (NAS:AIRT)
Gross Profit
$17.2 Mil (TTM As of Jun. 2015)

Air T Inc's gross profit for the three months ended in Jun. 2015 was $2.9 Mil. Air T Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2015 was $17.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Air T Inc's gross profit for the three months ended in Jun. 2015 was $2.9 Mil. Air T Inc's revenue for the three months ended in Jun. 2015 was $22.4 Mil. Therefore, Air T Inc's Gross Margin for the quarter that ended in Jun. 2015 was 13.11%.

Air T Inc had a gross margin of 13.11% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Air T Inc was 20.34%. The lowest was 0.24%. And the median was 17.47%.

Warning Sign:

Air T Inc gross margin has been in long term decline. The average rate of decline per year is -4.4%.


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. 2015 is calculated as

Gross Profit (A: Mar. 2015 )=Revenue - Cost of Goods Sold
=112.181 - 94.554
=17.6

Air T Inc's Gross Profit for the quarter that ended in Jun. 2015 is calculated as

Gross Profit (Q: Jun. 2015 )=Revenue - Cost of Goods Sold
=22.359 - 19.427
=2.9

Air T Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2015 was 6.482 (Sep. 2014 ) + 5.236 (Dec. 2014 ) + 2.549 (Mar. 2015 ) + 2.931 (Jun. 2015 ) = $17.2 Mil.

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

Air T Inc's Gross Margin for the quarter that ended in Jun. 2015 is calculated as

Gross Margin (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=2.9 / 22.359
=13.11 %

* 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 13.11% for the quarter that ended in Jun. 2015 => 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Gross_Profit 0.00.015.718.316.514.313.814.616.217.6

Air T Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Gross_Profit 3.93.33.84.84.43.46.55.22.52.9
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