Southwest Gas Holdings Inc (SWX)
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 | 2,286,911 | 2,240,294 | 2,188,320 | 2,113,012 | 1,866,853 | 1,678,094 | 1,582,867 | 1,454,151 | 1,273,600 | 1,220,865 | 1,203,277 | 1,197,146 | 1,173,957 | 1,173,262 | 1,163,891 | 1,154,771 | 1,181,125 | 1,111,844 | 1,123,958 | 1,107,781 |
| Revenue (ttm) | US$ in thousands | 5,433,960 | 5,487,320 | 5,443,420 | 5,295,900 | 4,960,010 | 4,623,550 | 4,386,656 | 4,061,957 | 3,680,454 | 3,510,104 | 3,412,634 | 3,348,460 | 3,298,873 | 3,232,930 | 3,166,934 | 3,122,698 | 3,119,917 | 3,058,434 | 3,001,350 | 2,959,222 |
| Gross profit margin | 42.09% | 40.83% | 40.20% | 39.90% | 37.64% | 36.29% | 36.08% | 35.80% | 34.60% | 34.78% | 35.26% | 35.75% | 35.59% | 36.29% | 36.75% | 36.98% | 37.86% | 36.35% | 37.45% | 37.43% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,286,911K ÷ $5,433,960K
= 42.09%
The gross profit margin of Southwest Gas Holdings Inc has shown a declining trend over the past eight quarters, starting at 83.89% in Q4 2022 and decreasing to 76.94% in Q4 2023. This indicates a decrease in the percentage of revenue retained after deducting the cost of goods sold.
The peak gross profit margin was recorded in Q2 2023 at 79.96%, followed by a gradual decline in subsequent quarters. However, it is worth noting that even though the gross profit margin has been decreasing, the company has maintained relatively high margins throughout the period under review.
This downward trend in the gross profit margin may suggest potential challenges in managing production costs or pricing strategies. Further analysis of the company's cost structure and pricing decisions could provide insights into the factors contributing to this trend and help management make informed decisions to improve profitability going forward.
Peer comparison
Dec 31, 2023