Gross Margin % is calculated as gross profit divided by its revenue. Gogo's Gross Profit for the
three
months ended in Dec. 2023 was $64.6 Mil. Gogo's Revenue for the
three
months ended in Dec. 2023 was $97.8 Mil. Therefore, Gogo's Gross Margin % for the quarter that ended in Dec. 2023 was 66.02%.
The historical rank and industry rank for Gogo's Gross Margin % or its related term are showing as below:
GOGO'
s Gross Margin % Range Over the Past 10 Years
Min: 48.02 Med: 66.47 Max: 69.61
Current: 66.56
During the past 13 years, the highestGross Margin % of Gogo was 69.61%. The lowest was 48.02%. And the median was 66.47%.
GOGO's Gross Margin % is ranked better than 75.99% of 354
companies
in the Telecommunication Services industry
Industry Median: 48.97
vs GOGO: 66.56
Gogo had a gross margin of 66.02% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Gogo was -0.70% per year.
Gogo Gross Margin % Historical Data
The historical data trend for Gogo'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 Telecom Services subindustry, Gogo'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.
Gogo's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gogo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gogo'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.
Gogo (NAS:GOGO) 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
Gogo had a gross margin of 66.02% 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.
Gogo Gross Margin % Related Terms
Thank you for viewing the detailed overview of Gogo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gogo Inc is a us-based in-flight connectivity system and service provider. The company through its subsidiaries offers aero communications, in-flight broadband, and wireless in-cabin digital entertainment solutions for the aviation industry. Its business segments include; Commercial Aviation North America, Commercial Aviation Rest of World, and Business Aviation. The company offers connectivity and entertainment services to commercial airlines flying routes within North America, satellite-based connectivity and entertainment services to foreign-based commercial airlines and North American-based commercial airlines flying outside North America, and a variety of in-flight Internet connectivity and other voice and data communications products and services.
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