Advanced Drainage Systems Inc (WMS)
Gross profit margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,145,950 | 1,118,410 | 800,384 | 690,082 | 316,479 |
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Gross profit margin | 39.77% | 36.41% | 28.91% | 34.91% | 19.38% |
March 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,145,950K ÷ $2,881,170K
= 39.77%
The gross profit margin of Advanced Drainage Systems Inc has shown varying trends over the past five years. In Mar 31, 2020, the company had a relatively low gross profit margin of 19.38%. However, there was a significant improvement in Mar 31, 2022, when the gross profit margin increased to 28.91%.
Subsequently, in Mar 31, 2023, there was a further improvement to 36.41%, indicating better control over the cost of goods sold. However, in Mar 31, 2024, the gross profit margin slightly decreased to 39.77%, which could be a result of changes in the company's pricing strategy, cost structure, or sales mix.
Overall, the improving trend in the gross profit margin from 2019 to 2023 suggests that Advanced Drainage Systems Inc has been effectively managing its production costs and generating more revenue from each dollar of sales. However, the slight decline in the most recent year may warrant further investigation to ensure the company's profitability remains sustainable.