Spire Inc (SR)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	2,194,500	1,813,900	2,093,200	-276,900	-124,600
Revenue	US$ in thousands	2,480,600	2,078,700	2,128,900	1,749,900	1,848,000
Gross profit margin		88.47%	87.26%	98.32%	-15.82%	-6.74%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,194,500K ÷ $2,480,600K
= 88.47%

The gross profit margin of Spire Inc. has experienced fluctuations over the past five years. In 2019 and 2020, the company reported a 100.00% gross profit margin, which may indicate anomalies in the data or unique circumstances that resulted in unusually high margins. Subsequently, there was a significant decrease in the gross profit margin to 57.67% in 2021, which continued to decline to 57.98% in 2022 and further to 52.71% in 2023.

The declining trend in the gross profit margin raises concerns about Spire Inc.'s ability to efficiently control its cost of goods sold in relation to its revenue. A decreasing gross profit margin suggests an increase in the cost of production relative to sales, which can impact the company's overall profitability. It is important for the company to investigate the factors contributing to this decline and take corrective actions to improve operational efficiency and maintain healthy profit margins.

However, it's important to note that the interpretation of the gross profit margin should be done in conjunction with other financial metrics and qualitative information to gain a comprehensive understanding of the company's financial performance and the factors driving the changes in the gross profit margin.