California Water Service Group (CWT)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	376,227	367,280	380,854	396,786	442,045	434,834	409,011	416,312	393,624	463,358	450,395	416,203	405,921	329,216	325,354	320,446	303,103	308,313	302,022	309,151
Revenue (ttm)	US$ in thousands	747,613	735,174	747,860	761,503	804,187	797,818	769,379	775,750	750,020	819,771	805,304	766,295	755,324	656,603	650,604	644,504	626,578	622,617	615,748	621,513
Gross profit margin		50.32%	49.96%	50.93%	52.11%	54.97%	54.50%	53.16%	53.67%	52.48%	56.52%	55.93%	54.31%	53.74%	50.14%	50.01%	49.72%	48.37%	49.52%	49.05%	49.74%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $376,227K ÷ $747,613K
= 50.32%

The gross profit margin of California Water Service Group has shown a decreasing trend over the past two quarters, dropping from 67.32% in Q2 2023 to 66.09% in Q4 2023. This decline may indicate potential challenges in maintaining profitability relative to revenue. However, when viewed in the broader context of the past eight quarters, the company's gross profit margin has remained relatively stable, fluctuating within a narrow range between 65.79% to 68.21%. This consistency suggests a certain level of efficiency in managing production costs and pricing strategies. It is essential for the company to monitor its gross profit margin closely to ensure sustainable profitability in the long run.