Atmos Energy Corporation (ATO)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	2,823,180	2,519,010	2,374,770	2,162,280	2,043,010
Revenue	US$ in thousands	4,275,360	4,201,660	3,407,490	2,821,140	2,901,850
Gross profit margin		66.03%	59.95%	69.69%	76.65%	70.40%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,823,180K ÷ $4,275,360K
= 66.03%

The gross profit margin of Atmos Energy Corp. has fluctuated over the past five years. In 2019, the gross profit margin was 70.40%, indicating that the company was generating a gross profit of 70.40 cents for every dollar of revenue. Subsequently, there was a decline in 2020, with the gross profit margin decreasing to 76.65%. This decline suggests that the cost of goods sold relative to revenue increased, leading to a lower gross profit margin.

The trend continued as the gross profit margin fell to 69.69% in 2021, indicating a further decrease in the company's ability to generate gross profit from its revenue. However, there was a notable improvement in 2022, as the gross profit margin increased to 59.95%, showing that the company was able to generate a higher gross profit relative to its revenue compared to the previous year.

The most recent data for September 30, 2023, shows a significant improvement in the gross profit margin, reaching 66.03%. This indicates that the company has been able to generate a higher gross profit relative to its revenue compared to the previous year. Overall, the fluctuation in the gross profit margin over the five-year period suggests varying levels of cost efficiency and pricing power within the company's operations. These changes may reflect shifts in input costs, pricing strategies, and internal operational efficiency that have impacted the company's ability to generate gross profit from its revenue.