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easyJet (LSE:EZJ) Gross Margin % : 24.55% (As of Sep. 2024)


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What is easyJet Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. easyJet's Gross Profit for the six months ended in Sep. 2024 was £1,483 Mil. easyJet's Revenue for the six months ended in Sep. 2024 was £6,041 Mil. Therefore, easyJet's Gross Margin % for the quarter that ended in Sep. 2024 was 24.55%.


The historical rank and industry rank for easyJet's Gross Margin % or its related term are showing as below:

LSE:EZJ' s Gross Margin % Range Over the Past 10 Years
Min: -45.47   Med: 16.82   Max: 22.75
Current: 16.76


During the past 13 years, the highest Gross Margin % of easyJet was 22.75%. The lowest was -45.47%. And the median was 16.82%.

LSE:EZJ's Gross Margin % is ranked worse than
58.94% of 945 companies
in the Transportation industry
Industry Median: 19.83 vs LSE:EZJ: 16.76

easyJet had a gross margin of 24.55% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for easyJet was 0.00% per year.


easyJet Gross Margin % Historical Data

The historical data trend for easyJet'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.

* Premium members only.

easyJet Gross Margin % Chart

easyJet Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.87 -45.47 13.88 16.88 16.76

easyJet Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.40 -1.38 25.83 2.36 24.55

Competitive Comparison of easyJet's Gross Margin %

For the Airlines subindustry, easyJet'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.


easyJet's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, easyJet's Gross Margin % distribution charts can be found below:

* The bar in red indicates where easyJet's Gross Margin % falls into.



easyJet Gross Margin % Calculation

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

easyJet's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=1560 / 9309
=(Revenue - Cost of Goods Sold) / Revenue
=(9309 - 7749) / 9309
=16.76 %

easyJet's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1483 / 6041
=(Revenue - Cost of Goods Sold) / Revenue
=(6041 - 4558) / 6041
=24.55 %

* 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.


easyJet  (LSE:EZJ) 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

easyJet had a gross margin of 24.55% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


easyJet Gross Margin % Related Terms

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easyJet Business Description

Address
Hangar 89, London Luton Airport, Luton, Bedfordshire, GBR, LU2 9PF
EasyJet is a leading European low-cost airline, headquartered in Luton, United Kingdom. Established in 1995, easyJet operates on a point-to-point model, providing affordable and efficient travel options across Europe. The airline serves more than 150 airports in over 30 countries, with a network spanning key cities and popular holiday destinations. EasyJet is known for its extensive route network, with primary bases at London Gatwick, Milan Malpensa, and Geneva, among others.

easyJet Headlines