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Aeris Environmental (ASX:AEI) Gross Margin % : 53.90% (As of Dec. 2023)


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What is Aeris Environmental Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aeris Environmental's Gross Profit for the six months ended in Dec. 2023 was A$0.83 Mil. Aeris Environmental's Revenue for the six months ended in Dec. 2023 was A$1.54 Mil. Therefore, Aeris Environmental's Gross Margin % for the quarter that ended in Dec. 2023 was 53.90%.

Warning Sign:

Aeris Environmental Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

ASX:AEI' s Gross Margin % Range Over the Past 10 Years
Min: 35.73   Med: 57.49   Max: 74.6
Current: 51.73


During the past 13 years, the highest Gross Margin % of Aeris Environmental was 74.60%. The lowest was 35.73%. And the median was 57.49%.

ASX:AEI's Gross Margin % is ranked better than
91.54% of 2945 companies
in the Industrial Products industry
Industry Median: 26.55 vs ASX:AEI: 51.73

Aeris Environmental had a gross margin of 53.90% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Aeris Environmental was -1.90% per year.


Aeris Environmental Gross Margin % Historical Data

The historical data trend for Aeris Environmental'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.

Aeris Environmental Gross Margin % Chart

Aeris Environmental Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.73 54.66 38.63 45.03 49.07

Aeris Environmental Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 48.14 39.70 50.05 48.08 53.90

Competitive Comparison of Aeris Environmental's Gross Margin %

For the Pollution & Treatment Controls subindustry, Aeris Environmental'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.


Aeris Environmental's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Aeris Environmental's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Aeris Environmental's Gross Margin % falls into.



Aeris Environmental Gross Margin % Calculation

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

Aeris Environmental's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=0.9 / 1.93
=(Revenue - Cost of Goods Sold) / Revenue
=(1.93 - 0.983) / 1.93
=49.07 %

Aeris Environmental's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=0.8 / 1.538
=(Revenue - Cost of Goods Sold) / Revenue
=(1.538 - 0.709) / 1.538
=53.90 %

* 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.


Aeris Environmental  (ASX:AEI) 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

Aeris Environmental had a gross margin of 53.90% for the quarter that ended in Dec. 2023 => 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.


Aeris Environmental Gross Margin % Related Terms

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


Aeris Environmental (ASX:AEI) Business Description

Traded in Other Exchanges
N/A
Address
Unit 5, 26-34 Dunning Avenue, Level 1, Rosebery, Sydney, NSW, AUS, 2018
Aeris Environmental Ltd is engaged in the research, development, commercialization of proprietary technologies, and distribution of the AerisGuard products and provides HVAC/R Hygiene and Remediation Technology, and Energy Efficiency services. The company provides various solutions and products such as Aerisview, Aerisguard Polymers, Aeris Smarthub, Bioactive Coil Treatment, Multi Enzyme Coil Cleaner, Surface Treatment, HD Cleaner, and others. Its geographic reportable segments are Australia and International. The company generates a majority of its revenue from Australia.