Air Canada (Air Canada) Gross Margin % : 20.30% (As of Mar. 2024)

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What is Air Canada Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Air Canada's Gross Profit for the three months ended in Mar. 2024 was $784 Mil. Air Canada's Revenue for the three months ended in Mar. 2024 was $3,861 Mil. Therefore, Air Canada's Gross Margin % for the quarter that ended in Mar. 2024 was 20.30%.

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

ACDVF' s Gross Margin % Range Over the Past 10 Years
Min: -39.65 Med: 22.94 Max: 28.31
Current: 28.31

During the past 13 years, the highest Gross Margin % of Air Canada was 28.31%. The lowest was -39.65%. And the median was 22.94%.

ACDVF's Gross Margin % is ranked better than
67.51% of 945 companies
in the Transportation industry
Industry Median: 20.25 vs ACDVF: 28.31

Air Canada had a gross margin of 20.30% for the quarter that ended in Mar. 2024 => Competition eroding margins

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

Air Canada Gross Margin % Historical Data

The historical data trend for Air Canada'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.

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Air Canada Gross Margin % Chart

Air Canada Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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24.00

-39.65

-19.23

16.88

28.17

Air Canada Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															19.13	31.82	38.51	20.19	20.30

Competitive Comparison of Air Canada's Gross Margin %

For the Airlines subindustry, Air Canada'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 Canada's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Air Canada's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Air Canada's Gross Margin % falls into.

Air Canada Gross Margin % Calculation

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

Air Canada's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	4584.1	/	16273.852
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16273.852 - 11689.773)	/	16273.852
	=	28.17 %

Air Canada's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	783.8	/	3860.816
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3860.816 - 3076.98)	/	3860.816
	=	20.30 %

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 Canada (OTCPK:ACDVF) 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 Canada had a gross margin of 20.30% for the quarter that ended in Mar. 2024 => 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 Canada Gross Margin % Related Terms

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Air Canada (Air Canada) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Air Canada (OTCPK:ACDVF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ADH2:Germany AC:Canada

Address

7373 Cote Vertu Boulevard West, Air Canada Centre, Saint-Laurent, QC, CAN, H4S 1Z3

Website

https://www.aircanada.com

Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its low-cost sub-brand called Rouge and contracts for regional connection flights to its network. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2022, the company generated CAD 16.6 billion in total revenue, down from CAD 19 billion in 2019 as the airline is still recovering from the pandemic and related travel restrictions.