Waters Corporation (WAT)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	767,502	921,585	892,435	684,963	752,415
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Gross profit margin		27.00%	31.86%	32.62%	29.66%	32.03%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $767,502K ÷ $2,842,300K
= 27.00%

Waters Corp.'s gross profit margin has shown fluctuations over the past five years. In 2023, the gross profit margin reached 59.57%, representing an improvement from the previous year's margin of 58.00%. This indicates that the company was able to generate more gross profit relative to its revenue in 2023. Comparing to the margins in 2021 and 2020, which were 58.49% and 57.44% respectively, the 2023 gross profit margin reflects a positive trend. However, it is slightly lower than the margin reported in 2019, which was also 58.00%.

Overall, the recent increase in gross profit margin suggests that Waters Corp. may have effectively managed its production costs, maintained pricing power, or increased sales prices, resulting in improved profitability at the gross level. Further analysis of the company's cost structure and revenue streams would be necessary to fully understand the drivers behind these changes in gross profit margin over the years.