Waters Corporation (WAT)

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	1,744,387	1,683,116	1,585,053	1,615,777	1,691,623	1,734,378	1,814,118	2,099,692	1,859,577	1,838,728	1,804,450	1,747,085	1,710,821	1,703,269	1,656,860	1,298,632	1,390,341	1,357,347	1,351,694	1,417,683
Revenue (ttm)	US$ in thousands	2,909,141	2,825,198	2,766,143	2,798,644	2,857,555	2,913,395	2,928,280	2,913,876	2,923,159	2,904,113	2,856,130	2,822,850	2,740,936	2,690,971	2,625,688	2,463,034	2,316,295	2,242,766	2,225,719	2,306,467
Gross profit margin		59.96%	59.58%	57.30%	57.73%	59.20%	59.53%	61.95%	72.06%	63.62%	63.31%	63.18%	61.89%	62.42%	63.30%	63.10%	52.72%	60.02%	60.52%	60.73%	61.47%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,744,387K ÷ $2,909,141K
= 59.96%

Waters Corporation has shown fluctuations in its gross profit margin over the past few years based on the provided data. The gross profit margin measures the proportion of revenue that exceeds the cost of goods sold.

The trend indicates a generally stable gross profit margin in the range of 60% to 63% from 2020 to 2022, with some minor fluctuations but staying within this range. The margin reached its peak in March 2023 at 72.06%, marking a significant improvement in profitability.

However, starting from June 2023, there was a noticeable decline in the gross profit margin, dropping to 57.30% by June 2024. This downward trend continued into the last quarter of 2024, with the margin slightly increasing but remaining below the levels seen in previous years.

The increase in the gross profit margin from December 2024 to 59.96% indicates a potential recovery in profitability, but it is essential for investors and stakeholders to monitor future financial results to assess the sustainability of this improvement. Overall, while Waters Corporation has seen fluctuations in its gross profit margin, it remains crucial to delve deeper into the company's operations and financial performance to understand the factors driving these changes.