Air Methods's gross profit for the
three
months ended in Dec. 2016 was $110 Mil. Air Methods's gross profit for the trailing twelve months (TTM) ended in Dec. 2016 was $450 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Air Methods's gross profit for the
three
months ended in Dec. 2016 was $110 Mil. Air Methods's Revenue for the
three
months ended in Dec. 2016 was $297 Mil. Therefore, Air Methods's Gross Margin % for the quarter that ended in Dec. 2016 was 36.83%.
Air Methods had a gross margin of 36.83% for the quarter that ended in Dec. 2016 => Competition eroding margins
Air Methods Gross Profit Historical Data
The historical data trend for Air Methods's Gross Profit 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.
Competitive Comparison of Air Methods's Gross Profit
For the Airports & Air Services subindustry, Air Methods's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Air Methods's Gross Profit Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Methods's Gross Profit distribution charts can be found below:
* The bar in red indicates where Air Methods's Gross Profit falls into.
Air Methods Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Air Methods's Gross Profit for the fiscal year that ended in Dec. 2016 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $450 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
Air Methods (NAS:AIRM) Gross Profit 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 Methods had a gross margin of 36.83% for the quarter that ended in Dec. 2016 => Competition eroding margins
Air Methods Gross Profit Related Terms
Thank you for viewing the detailed overview of Air Methods's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Air Methods Corp is a Delaware corporation, was established in Colorado in 1982. The Company provides air medical emergency transport services and systems throughout the United States of America. It designs, manufactures, and installs medical aircraft interiors and other aerospace and medical transport products. The Company also provides tourism operations in and around the Grand Canyon and Hawaiian Islands. The Company's operating segments include Air Medical Services, Tourism Division and United Rotorcraft. Air Medical Services provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. The division operates 380 helicopters and 26 fixed wing aircraft under both Instrument Flight Rules and Visual Flight Rules. Tourism Division provides helicopter tours and charter flights, mainly focusing on Grand Canyon and Hawaiian Island tours. The division operates 48 helicopters under two Part 135 Air Carrier Certificates. United Rotorcraft Division designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. The Company maintains patents covering several products, including the Litter Lift System used in the U.S. Army's HH-60M helicopter and Medical Evacuation Vehicle, and the Articulating Patient Loading System and Modular Equipment Frame developed as part of the modular interior concept. The Company competes with several national and regional air medical transportation providers for contracts with hospitals and other healthcare institutions. It also competes with larger aerial tourism operators in the Grand Canyon market and a number of smaller operators in both the Grand Canyon and Hawaiian Island markets. The Company is subject to the Federal Aviation Act of 1958. All of its flight and maintenance operations-including equipment, ground facilities, dispatch, communications, flight training personnel and other matters affecting air safety are regulated and actively supervised by the U.S. Department of Transportation through the FAA. It is also subject to laws, regulations, and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission (SEC) regulations, NASDAQ Stock Market rules, and other federal and state securities laws.
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