Gross Margin % is calculated as gross profit divided by its revenue. Mesa Air Group's Gross Profit for the
three
months ended in Sep. 2023 was $-5.7 Mil. Mesa Air Group's Revenue for the
three
months ended in Sep. 2023 was $114.4 Mil. Therefore, Mesa Air Group's Gross Margin % for the quarter that ended in Sep. 2023 was -4.98%.
Warning Sign:
Mesa Air Group Inc gross margin has been in long-term decline. The average rate of decline per year is -38.8%.
The historical rank and industry rank for Mesa Air Group's Gross Margin % or its related term are showing as below:
MESA'
s Gross Margin % Range Over the Past 10 Years
Min: 0.32 Med: 10.25 Max: 25.05
Current: 3.03
During the past 13 years, the highestGross Margin % of Mesa Air Group was 25.05%. The lowest was 0.32%. And the median was 10.25%.
MESA's Gross Margin % is ranked worse than 92.39% of 946
companies
in the Transportation industry
Industry Median: 19.95
vs MESA: 3.03
Mesa Air Group had a gross margin of -4.98% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Mesa Air Group was -38.80% per year.
Mesa Air Group Gross Margin % Historical Data
The historical data trend for Mesa Air Group'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.
For the Airlines subindustry, Mesa Air Group'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.
Mesa Air Group Gross Margin % Distribution
For the Transportation industry and Industrials sector, Mesa Air Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mesa Air Group'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.
Mesa Air Group (NAS:MESA) 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
Mesa Air Group had a gross margin of -4.98% for the quarter that ended in Sep. 2023 => 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.
Mesa Air Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Mesa Air Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mesa Air Group (Mesa Air Group) Business Description
Mesa Air Group Inc is a regional air carrier providing scheduled passenger service. It provides scheduled passenger service to 129 cities in the District of Columbia, the Bahamas, and Mexico, as well as cargo services out of Cincinnati/Northern Kentucky International Airport. Flights are operated as American Eagle, United Express, or DHL Express flights to the terms of capacity purchase agreements with American and United and a flight services agreement with DHL. The business has a presence in domestic hubs and cities, including Dallas, Houston, Phoenix, and Washington-Dulles.
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