American States Water Company (AWR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	405,854	310,084	318,054	304,663	299,363
Revenue	US$ in thousands	595,699	491,528	498,853	488,243	473,869
Gross profit margin		68.13%	63.09%	63.76%	62.40%	63.17%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $405,854K ÷ $595,699K
= 68.13%

The gross profit margin of American States Water Co. has shown variability over the past five years, ranging from 78.26% to 82.11%. The highest gross profit margin was recorded in 2023 at 82.11%, indicating that for every dollar of revenue generated, 82.11 cents were retained as gross profit after deducting the cost of goods sold. This suggests improved efficiency in managing production costs and pricing strategies in the most recent year. However, it is noteworthy that the gross profit margin in 2022 was slightly lower at 78.26%, and the same level was maintained in 2021.

Overall, the company has generally maintained a high gross profit margin above 78%, which signifies a robust ability to control production costs relative to its revenue. The consistency in maintaining a gross profit margin above 78% over the years indicates a stable cost structure and a healthy pricing strategy. Investors and stakeholders may view this trend positively, as it reflects the company's operational efficiency and profitability in generating gross income from its core operations.