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PRZO (ParaZero Technologies) Gross Margin % : -2.31% (As of Dec. 2024)


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What is ParaZero Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ParaZero Technologies's Gross Profit for the six months ended in Dec. 2024 was $-0.02 Mil. ParaZero Technologies's Revenue for the six months ended in Dec. 2024 was $0.65 Mil. Therefore, ParaZero Technologies's Gross Margin % for the quarter that ended in Dec. 2024 was -2.31%.


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

PRZO' s Gross Margin % Range Over the Past 10 Years
Min: -11.42   Med: 23.19   Max: 39.82
Current: 6.22


During the past 5 years, the highest Gross Margin % of ParaZero Technologies was 39.82%. The lowest was -11.42%. And the median was 23.19%.

PRZO's Gross Margin % is ranked worse than
92.76% of 304 companies
in the Aerospace & Defense industry
Industry Median: 25.735 vs PRZO: 6.22

ParaZero Technologies had a gross margin of -2.31% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

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


ParaZero Technologies Gross Margin % Historical Data

The historical data trend for ParaZero Technologies'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.

ParaZero Technologies Gross Margin % Chart

ParaZero Technologies Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
-11.42 35.91 39.82 23.19 6.22

ParaZero Technologies Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only 49.64 43.77 -2.54 25.80 -2.31

Competitive Comparison of ParaZero Technologies's Gross Margin %

For the Aerospace & Defense subindustry, ParaZero Technologies'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.


ParaZero Technologies's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, ParaZero Technologies's Gross Margin % distribution charts can be found below:

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


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ParaZero Technologies Gross Margin % Calculation

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

ParaZero Technologies's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=0.1 / 0.932
=(Revenue - Cost of Goods Sold) / Revenue
=(0.932 - 0.874) / 0.932
=6.22 %

ParaZero Technologies's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=-0 / 0.649
=(Revenue - Cost of Goods Sold) / Revenue
=(0.649 - 0.664) / 0.649
=-2.31 %

* 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.


ParaZero Technologies  (NAS:PRZO) 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

ParaZero Technologies had a gross margin of -2.31% for the quarter that ended in Dec. 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.


ParaZero Technologies Gross Margin % Related Terms

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ParaZero Technologies Business Description

Traded in Other Exchanges
N/A
Address
30 Dov Hoz, Kiryat Ono, ISR, 5555626
ParaZero Technologies Ltd is an aerospace company that is focused on drone safety systems and engaged in the business of designing, developing, and providing autonomous parachute safety systems for commercial drones, also known as unmanned aerial systems. The ParaZero SafeAir system of the comapany applies real-time data analytics to identify and mitigate flight risks autonomously and increase safety for bystanders while protecting the loss of expensive drones, equipment, and payloads.