Red Cat Holdings (FRA:BQ73) Gross Margin % : -1.49% (As of Oct. 2024)

Red Cat Holdings Gross Margin % Chart

Red Cat Holdings Annual Data
	Trend	Dec14	Dec15	Dec16	Dec17	Dec18	Apr20	Apr21	Apr22	Apr23	Apr24
Gross Margin %		Get a 7-Day Free Trial					19.62	21.41	14.40	-18.06	20.64

Red Cat Holdings Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Gross Margin %	Get a 7-Day Free Trial															30.54	18.85	19.08	-17.38	-1.49

Competitive Comparison of Red Cat Holdings's Gross Margin %

For the Computer Hardware subindustry, Red Cat Holdings'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.

Red Cat Holdings's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Red Cat Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Red Cat Holdings's Gross Margin % falls into.

Red Cat Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Red Cat Holdings's Gross Margin for the fiscal year that ended in Apr. 2024 is calculated as

Red Cat Holdings's Gross Margin for the quarter that ended in Oct. 2024 is calculated as

* 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.

Red Cat Holdings  (FRA:BQ73) 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

Red Cat Holdings had a gross margin of -1.49% for the quarter that ended in Oct. 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.

Red Cat Holdings Gross Margin % Related Terms

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Red Cat Holdings Business Description