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Avis Budget Group Gross Margin %

: 84.06% (As of Jun. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Avis Budget Group's Gross Profit for the three months ended in Jun. 2021 was $1,993 Mil. Avis Budget Group's Revenue for the three months ended in Jun. 2021 was $2,371 Mil. Therefore, Avis Budget Group's Gross Margin % for the quarter that ended in Jun. 2021 was 84.06%.


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

NAS:CAR' s Gross Margin % Range Over the Past 10 Years
Min: 71.77   Med: 76.32   Max: 79.51
Current: 79.51

71.77
79.51

During the past 13 years, the highest Gross Margin % of Avis Budget Group was 79.51%. The lowest was 71.77%. And the median was 76.32%.

NAS:CAR's Gross Margin % is ranked higher than
54% of the 313 Companies
in the Business Services industry.

( Industry Median: 41.13 vs. NAS:CAR: 79.51 )

Avis Budget Group had a gross margin of 84.06% for the quarter that ended in Jun. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avis Budget Group was -0.90% per year.


Avis Budget Group Gross Margin % Historical Data

The historical data trend for Avis Budget 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.

* Premium members only.

Avis Budget Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.24 75.49 75.59 76.61 71.77

Avis Budget Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 50.53 76.21 76.90 77.92 84.06

Competitive Comparison

For the Rental & Leasing Services subindustry, Avis Budget 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.

   

Avis Budget Group Gross Margin % Distribution

For the Business Services industry and Industrials sector, Avis Budget Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Avis Budget Group's Gross Margin % falls into.



Avis Budget Group Gross Margin % Calculation

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

Avis Budget Group's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=3877 / 5402
=(Revenue - Cost of Goods Sold) / Revenue
=(5402 - 1525) / 5402
=71.77 %

Avis Budget Group's Gross Margin for the quarter that ended in Jun. 2021 is calculated as


Gross Margin % (Q: Jun. 2021 )=Gross Profit (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=1993 / 2371
=(Revenue - Cost of Goods Sold) / Revenue
=(2371 - 378) / 2371
=84.06 %

* 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.


Avis Budget Group  (NAS:CAR) 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

Avis Budget Group had a gross margin of 84.06% for the quarter that ended in Jun. 2021 => Durable 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.


Avis Budget Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Avis Budget Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Avis Budget Group Business Description

Avis Budget Group logo
Industry
Industrials » Business Services NAICS : 532111 SIC : 7514
Traded in Other Exchanges
Address
6 Sylvan Way, Parsippany, NJ, USA, 07054
Avis Budget Group Inc is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The company operates its own network of rental locations and licenses its brands to franchisees. Zipcar is a car-sharing service that allows members to use the company-owned Zipcar fleet at an hourly rate. The company's largest region by revenue is the Americas.
Executives
Ferraro Joseph A. officer: President and CEO 6 SYLVAN WAY PARSIPPANY NJ 07054
Martins Izilda P officer: EVP, Americas 6 SYLVAN WAY PARSIPPANY NJ 07054
Sarma Karthik R. director, 10 percent owner ONE BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Srs Investment Management, Llc director, 10 percent owner 1 BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Hees Bernardo director, officer: Executive Chairman C/O THE KRAFT HEINZ COMPANY ONE PPG PLACE, SUITE 3200 PITTSBURGH PA 15222
Choi Brian J officer: EVP & Chief Financial Officer C/O SRS INVESTMENT MANAGEMENT, LLC ONE BRYANT PARK, 39TH FLOOR NEW YORK NY 10036
Rankin Patrick K officer: President, International 6 SYLVAN WAY PARSIPPANY NJ 07054
Lurie Glenn director C/O SYNCHRONOSS TECHNOLOGIES, INC. 200 CROSSING BLVD. BRIDGEWATER NJ 08807
Sparks Carl director 4315 NORTHAVEN ROAD DALLAS TX 75229
Krominga Lynn director 6 SYLVAN WAY PARSIPPANY NJ 07054
North John F officer: EVP & Chief Financial Officer 150 N. BARTLETT STREET MEDFORD OR 97501
Sera Jean M officer: SVP, GC & Corp. Sec. AVIS BUDGET GROUP 6 SYLVAN WAY PARSIPPANY NJ 07054
Fox Jeffrey H director ONE ALLIED DRIVE LITTLE ROCK AR 72202
Salerno F Robert director AVIS RENT A CAR INC 900 OLD COUNTRY RD GARDEN CITY NY 11530
Degenova Cathleen officer: Chief Accounting Officer 6 SYLVAN WAY PARSIPPANY NJ 07054

Avis Budget Group Headlines

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