American Water Works (AWK)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	4,587,000	4,450,000	4,293,000	4,241,000	4,163,000	4,075,000	3,983,000	3,828,000	3,744,000	4,520,000	4,538,000	4,598,000	4,638,000	3,878,000	3,858,000	3,776,000	3,742,000	3,682,000	3,621,000	3,595,000
Revenue (ttm)	US$ in thousands	4,649,000	4,503,000	4,345,000	4,293,000	4,215,000	4,124,000	4,030,000	3,872,000	3,785,000	4,558,000	4,576,000	4,636,000	4,676,000	3,922,000	3,902,000	3,820,000	3,786,000	3,724,000	3,663,000	3,637,000
Gross profit margin		98.67%	98.82%	98.80%	98.79%	98.77%	98.81%	98.83%	98.86%	98.92%	99.17%	99.17%	99.18%	99.19%	98.88%	98.87%	98.85%	98.84%	98.87%	98.85%	98.85%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,587,000K ÷ $4,649,000K
= 98.67%

American Water Works has maintained a consistently high gross profit margin over the past few years, ranging from 98.67% to 99.19%. The gross profit margin reflects the efficiency of the company in managing its production costs and generating profits from its core operations. The company's gross profit margin peaked at 99.19% in December 2021, indicating a strong ability to control costs and maximize profitability. However, there was a slight decline in the margin to 98.67% by December 2024. This trend suggests that the company may have experienced some fluctuations in its cost structure or pricing strategies during this period. Overall, American Water Works' gross profit margin demonstrates a consistent focus on maintaining profitability and cost efficiency in its operations.