American States Water Company (AWR)

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	417,278	401,938	395,913	399,867	426,609	435,081	420,669	385,022	330,564	321,259	320,580	325,268	337,838	373,587	370,779	366,037	359,068	347,861	359,238	367,698
Revenue (ttm)	US$ in thousands	595,459	577,541	567,455	569,527	595,699	595,886	579,174	544,381	491,528	482,785	484,556	490,363	498,853	506,429	503,362	496,226	488,243	477,036	477,844	481,213
Gross profit margin		70.08%	69.59%	69.77%	70.21%	71.61%	73.01%	72.63%	70.73%	67.25%	66.54%	66.16%	66.33%	67.72%	73.77%	73.66%	73.76%	73.54%	72.92%	75.18%	76.41%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $417,278K ÷ $595,459K
= 70.08%

The gross profit margin of American States Water Company has shown some fluctuation over the past few quarters. It was relatively high in the first half of 2020, ranging from 72.92% to 76.41%, indicating the company was able to generate a significant percentage of revenue after accounting for the cost of goods sold.

However, the gross profit margin gradually decreased towards the end of 2020 and into 2021, with percentages ranging from 66.33% to 73.77%. This could suggest various factors such as changes in pricing strategies, cost structures, or competitive pressures impacting the company's ability to maintain higher margins.

In 2022, there was a noticeable decline in the gross profit margin, dropping to around 66%, which could be a concern for investors as it indicates a decrease in profitability. However, the company managed to improve the margin slightly in the following quarters of 2023 and 2024, with numbers ranging from 69.59% to 73.01%.

Overall, while there have been fluctuations in the gross profit margin of American States Water Company, the company has shown some ability to manage and improve its profitability over time. Investors and stakeholders may want to monitor future financial reports to assess the company's ability to maintain or increase its margins.