Advanced Drainage Systems Inc (WMS)
Gross profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,145,949 | 1,116,407 | 1,080,475 | 1,097,761 | 1,118,408 | 1,086,216 | 1,071,276 | 951,370 | 800,384 | 737,372 | 696,900 | 702,700 | 690,082 | 671,620 | 626,473 | 567,140 | 316,479 | 267,228 | 216,269 | 165,118 |
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Gross profit margin | 39.72% | 39.14% | 37.98% | 37.23% | 36.41% | 34.65% | 33.53% | 31.54% | 28.87% | 29.11% | 30.25% | 32.80% | 34.88% | 35.23% | 34.54% | 32.13% | 18.93% | 16.98% | 14.43% | 11.71% |
March 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,145,949K ÷ $2,884,829K
= 39.72%
The gross profit margin of Advanced Drainage Systems Inc has shown a generally increasing trend over the past years, indicating an improvement in the company's ability to generate profit from its sales. The margin was at its lowest in June 2019 at 11.71% but has since experienced a significant upward trajectory, reaching 39.72% by March 2024.
This steady increase in gross profit margin reflects improved efficiency in managing production costs and an enhanced pricing strategy. It suggests that the company has been successful in controlling its direct costs such as the cost of goods sold, which has positively impacted its overall profitability.
Overall, the upward trend in gross profit margin for Advanced Drainage Systems Inc signifies a positive performance in generating profits from its core business activities. Investors and stakeholders often view an increasing gross profit margin as a positive indicator of operational efficiency and financial health.