H2O America (HTO)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	425,116	388,434	357,174	318,572	316,576
Revenue	US$ in thousands	748,439	670,363	620,698	573,686	564,526
Gross profit margin		56.80%	57.94%	57.54%	55.53%	56.08%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $425,116K ÷ $748,439K
= 56.80%

The gross profit margin of H2O America demonstrates a generally stable profitability trend over the period from December 31, 2020, to December 31, 2024. Starting at 56.08% at the end of 2020, the margin experienced a slight decline in 2021 to 55.53%, indicating marginally reduced profitability on sales during that year. However, this downward movement was not sustained, as the margin increased in 2022 to reach 57.54%, surpassing the 2020 level and reflecting improved efficiency or favorable sales mix.

The upward trend continued into 2023, with the gross profit margin rising marginally to 57.94%, marking the highest point within the period analyzed. This suggests an enhancement in cost management or an increase in the selling price relative to the cost of goods sold. In 2024, the margin slightly decreased to 56.80%, slightly below the 2023 record but still higher than the 2020 and 2021 figures.

Overall, the gross profit margin's fluctuation around the mid-50s percentage range indicates consistent profitability on sales, with periods of improvement suggesting effective cost control or favorable market conditions that benefit gross margins. The relatively narrow range of variation points to a stable gross profit structure over the analyzed period.