Gross Margin % is calculated as gross profit divided by its revenue. TUI AG's Gross Profit for the
three
months ended in Mar. 2024 was €-1 Mil. TUI AG's Revenue for the
three
months ended in Mar. 2024 was €3,650 Mil. Therefore, TUI AG's Gross Margin % for the quarter that ended in Mar. 2024 was -0.04%.
The historical rank and industry rank for TUI AG's Gross Margin % or its related term are showing as below:
XTER:TUI1'
s Gross Margin % Range Over the Past 10 Years
Min: -25.86 Med: 9.3 Max: 12.06
Current: 8.26
During the past 13 years, the highestGross Margin % of TUI AG was 12.06%. The lowest was -25.86%. And the median was 9.30%.
XTER:TUI1's Gross Margin % is ranked worse than 96.5% of 771
companies
in the Travel & Leisure industry
Industry Median: 43.25
vs XTER:TUI1: 8.26
TUI AG had a gross margin of -0.04% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TUI AG was 0.00% per year.
TUI AG Gross Margin % Historical Data
The historical data trend for TUI AG's Gross Margin % 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.
For the Travel Services subindustry, TUI AG's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
TUI AG's Gross Margin % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, TUI AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TUI AG's Gross Margin % falls into.
* 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.
TUI AG (XTER:TUI1) Gross Margin % 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
TUI AG had a gross margin of -0.04% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TUI AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of TUI AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TUI AG is a leisure and tourism company that operates airlines, cruises, tours, hotels, and resorts globally. The company organizes itself into six segments: Northern region, Central region, Western region, hotels and resorts, TUI Musement and cruises. Northern region principally comprises TUI's tour operators, airlines, and cruise business in the U.K., Ireland, and the Nordics. Central region includes the company's tour operators in Germany, Australia, Switzerland, and Poland, and the TUI fly airline. Western region includes TUI tour operators and airlines in Belgium and the Netherlands, and tour operators in France. The Northern, Central, and Western regions are the segments by revenue, in that order, and collectively constitute the vast majority of revenue.
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