Waters Corporation (WAT)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	284,082	767,502	921,585	892,435	684,963
Revenue	US$ in thousands	2,922,900	2,842,300	2,892,160	2,735,940	2,309,300
Gross profit margin		9.72%	27.00%	31.86%	32.62%	29.66%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $284,082K ÷ $2,922,900K
= 9.72%

Waters Corporation's gross profit margin has shown fluctuations over the years based on the data provided. In December 31 of 2020, the gross profit margin was 29.66%, indicating that the company retained approximately 29.66% of its total revenue as gross profit. Subsequently, there was an improvement in the gross profit margin to 32.62% by December 31, 2021, suggesting better profitability.

However, by December 31, 2022, the gross profit margin slightly decreased to 31.86%, though it remained relatively strong. The margin then notably dropped to 27.00% by December 31, 2023, indicating potential challenges in maintaining profitability.

The most significant decline occurred by December 31, 2024, with a gross profit margin of 9.72%. This substantial decrease may raise concerns about the company's ability to manage costs efficiently or generate sufficient revenue.

In summary, while Waters Corporation has displayed fluctuations in its gross profit margin over the years, it is vital for the company to closely monitor and address any factors impacting its profitability to ensure sustainable financial performance.