Gross Margin % is calculated as gross profit divided by its revenue. Air Lease's Gross Profit for the
three
months ended in Dec. 2023 was $274 Mil. Air Lease's Revenue for the
three
months ended in Dec. 2023 was $717 Mil. Therefore, Air Lease's Gross Margin % for the quarter that ended in Dec. 2023 was 38.25%.
Warning Sign:
Air Lease Corp gross margin has been in long-term decline. The average rate of decline per year is -5.8%.
The historical rank and industry rank for Air Lease's Gross Margin % or its related term are showing as below:
AL'
s Gross Margin % Range Over the Past 10 Years
Min: 35.6 Med: 46.17 Max: 50.11
Current: 35.8
During the past 13 years, the highestGross Margin % of Air Lease was 50.11%. The lowest was 35.60%. And the median was 46.17%.
AL's Gross Margin % is ranked better than 51.31% of 992
companies
in the Business Services industry
Industry Median: 34.725
vs AL: 35.80
Air Lease had a gross margin of 38.25% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Air Lease was -5.80% per year.
Air Lease Gross Margin % Historical Data
The historical data trend for Air Lease'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 Air Lease's Gross Margin %
For the Rental & Leasing Services subindustry, Air Lease'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.
Air Lease's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Air Lease's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Air Lease'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.
Air Lease (NYSE:AL) 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
Air Lease had a gross margin of 38.25% 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.
Air Lease Gross Margin % Related Terms
Thank you for viewing the detailed overview of Air Lease's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Air Lease Corp is an aircraft leasing company based in the United States. However, it derives its revenue from the Asia region. Its business involves purchasing aircraft from renowned manufacturers such as The Boeing Company (Boeing) and Airbus S.A.S and leasing them to airline companies across the world. Its suite of aircraft entails single-aisle narrow-bodied jets and twin-aisle wide-bodied aircraft. The company's primary source of revenue originates from the leasing of aircraft and to a certain extent from the provision of fleet management services to investors and owners of aircraft portfolios.
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