American Water Works (AWK)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,591,000 | 4,165,000 | 3,741,000 | 4,639,000 | 3,733,000 |
| Revenue | US$ in thousands | 4,653,000 | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 |
| Gross profit margin | 98.67% | 98.77% | 98.92% | 99.19% | 98.84% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,591,000K ÷ $4,653,000K
= 98.67%
Based on the provided data, American Water Works has maintained a consistently high gross profit margin over the years. The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, and it is a measure of a company's efficiency in managing its production costs.
American Water Works achieved a gross profit margin of 98.84% as of December 31, 2020, which further increased to 99.19% by December 31, 2021. Although there was a slight decrease in the gross profit margin to 98.92% by December 31, 2022, the company managed to maintain a strong performance. Subsequently, the margin slightly decreased to 98.77% by December 31, 2023, and further to 98.67% by December 31, 2024.
Overall, American Water Works has demonstrated remarkable consistency in maintaining a gross profit margin well above 98% over the years. This consistent performance reflects the company's ability to effectively control its production costs relative to its revenue, highlighting its efficiency in generating profits from its core operations.
Peer comparison
Dec 31, 2024