National Fuel Gas Company (NFG)

Gross profit margin

		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	Dec 31, 2019
Gross profit (ttm)	US$ in thousands	1,158,231	1,672,820	1,654,383	1,601,458	1,616,522	1,643,920	1,679,870	1,706,226	1,665,197	1,616,029	1,558,395	1,504,451	1,450,782	1,426,383	1,347,732	1,277,347	1,331,632	1,336,984	1,394,461	1,561,988
Revenue (ttm)	US$ in thousands	1,944,810	1,941,689	1,952,951	2,040,273	2,173,771	2,239,970	2,313,890	2,298,349	2,186,047	2,106,889	1,998,662	1,848,057	1,742,660	1,674,661	1,603,283	1,543,263	1,546,291	1,551,643	1,585,824	1,647,273
Gross profit margin		59.55%	86.15%	84.71%	78.49%	74.36%	73.39%	72.60%	74.24%	76.17%	76.70%	77.97%	81.41%	83.25%	85.17%	84.06%	82.77%	86.12%	86.17%	87.93%	94.82%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,158,231K ÷ $1,944,810K
= 59.55%

The gross profit margin of National Fuel Gas Company has exhibited fluctuations over the past few years, with values ranging from a low of 59.55% to a high of 94.82%. In general, the company has maintained relatively healthy gross profit margins, indicating its ability to effectively manage production costs relative to its revenue.

The downward trend in gross profit margin from December 2019 to September 2023 may suggest that the company faced challenges in controlling its cost of goods sold during this period. However, the margins improved in the subsequent quarters, reaching as high as 86.15% in June 2024, indicating a potential turnaround in cost management efforts.

It is essential for the company to closely monitor and manage its cost structure to sustain and potentially improve its gross profit margins in the future. This metric is crucial as it provides insights into the company's ability to generate profits from its core business operations before accounting for other operating expenses.