Gross Margin % is calculated as gross profit divided by its revenue. Jet AI's Gross Profit for the
three
months ended in Dec. 2023 was $-0.07 Mil. Jet AI's Revenue for the
three
months ended in Dec. 2023 was $4.18 Mil. Therefore, Jet AI's Gross Margin % for the quarter that ended in Dec. 2023 was -1.75%.
The historical rank and industry rank for Jet AI's Gross Margin % or its related term are showing as below:
JTAI'
s Gross Margin % Range Over the Past 10 Years
Min: -24.37 Med: -1.47 Max: 9.42
Current: 0.23
During the past 3 years, the highestGross Margin % of Jet AI was 9.42%. The lowest was -24.37%. And the median was -1.47%.
JTAI's Gross Margin % is ranked worse than 96.46% of 2629
companies
in the Software industry
Industry Median: 41.79
vs JTAI: 0.23
Jet AI had a gross margin of -1.75% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Jet AI was 0.00% per year.
Jet AI Gross Margin % Historical Data
The historical data trend for Jet AI'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 Software - Application subindustry, Jet AI'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.
Jet AI's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Jet AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jet AI'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.
Jet AI (NAS:JTAI) 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
Jet AI had a gross margin of -1.75% for the quarter that ended in Dec. 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.
Jet AI Gross Margin % Related Terms
Thank you for viewing the detailed overview of Jet AI's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jet AI Inc is principally involved in the sale of jet cards, which enable holders to use certain aircraft owned, leased by, arranged and/or managed by Jet Token and others at agreed-upon rates, as well as the sale of fractional interests in aircraft; and the operation of a proprietary booking platform, which functions as a prospecting and quoting platform to arrange private jet travel with third party carriers as well as via Jet Token's leased and managed aircraft.
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