American Water Works (AWK)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,165,000 | 3,741,000 | 4,639,000 | 3,733,000 | 3,564,000 |
| Revenue | US$ in thousands | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 | 3,606,000 |
| Gross profit margin | 98.77% | 98.92% | 99.19% | 98.84% | 98.84% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,165,000K ÷ $4,217,000K
= 98.77%
Based on the data provided, American Water Works Co. Inc. has consistently maintained a gross profit margin of 100% over the past five years. This signifies that the company has been able to effectively manage its cost of goods sold, resulting in a high level of profitability for each dollar of revenue generated. A gross profit margin of 100% implies that the company is able to cover all its production costs and still have a surplus to contribute towards covering other operating expenses and generating profits. This indicates strong operational efficiency and pricing strategy that allows the company to maintain a high level of profitability in its core operations.
Peer comparison
Dec 31, 2023