Waters Corporation (WAT)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	642,234	707,755	692,843	521,571	592,198
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Net profit margin		22.60%	24.47%	25.32%	22.59%	25.21%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $642,234K ÷ $2,842,300K
= 22.60%

The net profit margin for Waters Corp. has shown some fluctuations over the past five years. In 2023, the net profit margin decreased to 21.72% from 23.81% in 2022. This downward trend suggests a lower percentage of each dollar of revenue was retained as profit in 2023 compared to the previous year.

Despite the decrease in 2023, the net profit margin was relatively stable in the preceding years, ranging from 22.05% in 2020 to 24.87% in 2021. This indicates that Waters Corp. has historically been able to maintain a healthy level of profitability, with a significant portion of revenue translating into net income.

Overall, while the slight decline in the net profit margin in 2023 may warrant further investigation into the company's cost structure and operational efficiency, the historical performance indicates a solid track record of generating profits relative to revenue over the past five years.