Northwest Natural Gas Co (NWN)

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	689,569	406,090	295,968	299,497	307,302	378,469	378,769	373,172	341,225	326,516	325,925	324,106	329,119	330,443	330,118	323,436	300,504	284,723	283,381	282,411
Revenue (ttm)	US$ in thousands	1,152,994	1,137,832	1,142,377	1,168,522	1,197,475	1,217,014	1,192,374	1,149,475	1,037,353	956,190	940,798	894,755	860,400	826,583	818,420	804,474	773,679	760,670	757,703	746,175
Gross profit margin		59.81%	35.69%	25.91%	25.63%	25.66%	31.10%	31.77%	32.46%	32.89%	34.15%	34.64%	36.22%	38.25%	39.98%	40.34%	40.20%	38.84%	37.43%	37.40%	37.85%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $689,569K ÷ $1,152,994K
= 59.81%

The gross profit margin of Northwest Natural Gas Co has shown fluctuations over the reporting periods provided. Starting at 37.85% as of March 31, 2020, the margin dipped slightly to 37.40% by June 30, 2020, and then remained relatively stable around the mid to high 30% range for the next few quarters. There was a notable increase to 40.20% by March 31, 2021, indicating improved efficiency in generating profits from sales.

The margin continued to rise, reaching a peak of 59.81% by December 31, 2024, suggesting a significant increase in profitability during that quarter. However, following this peak, the margin dropped to 25.66% by March 31, 2024, and continued to decline steadily in subsequent quarters, hitting a low of 25.63% by June 30, 2024.

The abrupt decline in the gross profit margin towards the end of 2024 may raise concerns about the company's ability to maintain profitability levels in the near term. This downward trend may indicate challenges such as increasing costs, pricing pressure, or declining sales volumes that could impact the company's overall financial performance. Monitoring the gross profit margin closely in future periods will be essential to assess the company's ability to effectively manage its costs and pricing strategies to sustain profitability.