California Water Service Group (CWT)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	989,116	363,377	529,452	483,843	489,552
Revenue	US$ in thousands	1,036,810	794,632	846,431	790,909	794,307
Gross profit margin		95.40%	45.73%	62.55%	61.18%	61.63%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $989,116K ÷ $1,036,810K
= 95.40%

The gross profit margin for California Water Service Group has shown fluctuations over the past five years. In December 31, 2020, the gross profit margin was 61.63%, which slightly decreased to 61.18% by December 31, 2021. However, in the following year, it increased significantly to 62.55%. There was a notable decline in the gross profit margin to 45.73% by December 31, 2023, which may raise concerns about the company's cost management and pricing strategies during that period. Interestingly, there was a substantial improvement in the gross profit margin to 95.40% by December 31, 2024, indicating a potential significant increase in profitability, possibly due to effective cost controls or revenue growth surpassing cost increases. Overall, analyzing the gross profit margin trends can provide insights into the company's pricing strategies, cost efficiencies, and overall financial performance.