Gross Margin % is calculated as gross profit divided by its revenue. AerCap Holdings NV's Gross Profit for the
three
months ended in Dec. 2023 was $633 Mil. AerCap Holdings NV's Revenue for the
three
months ended in Dec. 2023 was $1,896 Mil. Therefore, AerCap Holdings NV's Gross Margin % for the quarter that ended in Dec. 2023 was 33.40%.
The historical rank and industry rank for AerCap Holdings NV's Gross Margin % or its related term are showing as below:
AER'
s Gross Margin % Range Over the Past 10 Years
Min: 28.36 Med: 32.84 Max: 38.29
Current: 33.43
During the past 13 years, the highestGross Margin % of AerCap Holdings NV was 38.29%. The lowest was 28.36%. And the median was 32.84%.
AER's Gross Margin % is ranked worse than 51.71% of 992
companies
in the Business Services industry
Industry Median: 34.725
vs AER: 33.43
AerCap Holdings NV had a gross margin of 33.40% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AerCap Holdings NV was 0.00% per year.
AerCap Holdings NV Gross Margin % Historical Data
The historical data trend for AerCap Holdings NV'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.
Competitive Comparison of AerCap Holdings NV's Gross Margin %
For the Rental & Leasing Services subindustry, AerCap Holdings NV'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.
AerCap Holdings NV's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, AerCap Holdings NV's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AerCap Holdings NV'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.
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
AerCap Holdings NV had a gross margin of 33.40% for the quarter that ended in Dec. 2023 => 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.
AerCap Holdings NV Gross Margin % Related Terms
Thank you for viewing the detailed overview of AerCap Holdings NV's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AerCap Holdings NV (AerCap Holdings NV) Business Description
AerCap Holdings NV is an aircraft leasing company. Its major activities include leasing, financing, sales, and management of commercial aircraft and engines. It also provides aircraft asset management and corporate services to securitization vehicles, joint ventures, and other third parties. Through its subsidiary, the group also provides engine leasing, certified aircraft engines, airframes, and engine parts. Its geographical segments include China, United States, and Other countries.
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