Mike Rapoport wrote:

"Brian Sponcil" wrote in message
...

"Matt Whiting" wrote in message
...

I don't think Cirrus has come even close to making money yet, on a total
investment basis. I haven't keep track of the total amount of venture
capital they've secured, but I think it was north of $200MM. That will
take a long time to recoup. They may well be profitable at the
operations level, but that isn't the same thing as "making money"
overall.

I'm sure you're right but a quick look at the numbers makes me wonder how
they AREN'T going to recoup that $$. Cirrus is selling something like 50
planes a month. You'd think their profit margin on a 300k airplane would
be at least 20k. If so, that's roughly 10Mil in profit every year and a
20 year break even on the initial 200Mil investment.


The gross margin on aircraft is much higher than 6.7%, it is more like
35-40%. Of course they have SG&A and R&D to cover but they are making an
incremental $100K+ on every plane.

Where did you find Cirrus' financial statements? Last I knew they were
privately held and I've been unable to find any financial statements,
audited or otherwise.


Matt