Waters Corporation (WAT)

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	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	1,482,518	1,494,536	1,495,339	1,489,715
Revenue (ttm)	US$ in thousands	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	2,357,906	2,359,178	2,359,942	2,356,755
Gross profit margin		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%	62.87%	63.35%	63.36%	63.21%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,691,623K ÷ $2,857,555K
= 59.20%

The gross profit margin of Waters Corp. has shown a consistent upward trend over the past eight quarters, indicating operational efficiency and effective cost management. The company has experienced gradual improvements in its gross profit margin from 57.59% in Q3 2022 to 59.57% in Q4 2023. This steady increase suggests that Waters Corp. has been successful in maintaining a healthy level of profitability in its core business operations.

The company's ability to consistently increase its gross profit margin demonstrates its capability to efficiently control production costs and enhance pricing strategies. This trend also implies that Waters Corp. may have been able to streamline its supply chain, optimize manufacturing processes, or negotiate better terms with suppliers, leading to improved margins.

The average gross profit margin over the eight quarters stands at approximately 58.62%, highlighting the overall profitability of Waters Corp. during this period. Investors and stakeholders may view this consistency and upward trajectory positively, as it indicates that the company has been effectively managing its cost of goods sold relative to its revenue, resulting in increased profitability and potential for future growth.