Advanced Drainage Systems Inc (WMS)
Gross profit margin
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,094,241 | 1,108,057 | 1,126,312 | 1,135,048 | 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 |
| Revenue (ttm) | US$ in thousands | 2,904,245 | 2,942,324 | 2,914,153 | 2,911,763 | 2,874,473 | 2,838,192 | 2,830,992 | 2,934,981 | 3,071,121 | 3,131,749 | 3,191,939 | 3,014,201 | 2,769,315 | 2,534,937 | 2,305,725 | 2,143,441 | 1,982,780 | 1,909,739 | 1,817,018 | 1,768,736 |
| Gross profit margin | 37.68% | 37.66% | 38.65% | 38.98% | 39.87% | 39.34% | 38.17% | 37.40% | 36.42% | 34.68% | 33.56% | 31.56% | 28.90% | 29.09% | 30.22% | 32.78% | 34.80% | 35.17% | 34.48% | 32.06% |
March 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,094,241K ÷ $2,904,245K
= 37.68%
The gross profit margin of Advanced Drainage Systems Inc has shown fluctuations over the analyzed period. Starting at 32.06% in June 2020, the margin increased gradually to reach 35.17% by December 2020. However, there was a slight decline in the following quarter to 34.80% in March 2021. Subsequently, the margin fluctuated but generally trended downwards, reaching a low of 28.90% by March 2022.
From March 2022 onwards, there was a notable improvement in the gross profit margin, with consistent increases quarter over quarter. The margin climbed to 39.87% by March 2024, showcasing a strong recovery and expansion in profitability. However, in the subsequent quarters, the margin slightly decreased but remained relatively stable within the range of 37.66% to 39.34% as of December 2024.
Overall, the trend indicates that Advanced Drainage Systems Inc has effectively managed its cost of goods sold and sales, leading to an improvement in the gross profit margin over the analyzed period. The company's ability to maintain a gross profit margin above 30% demonstrates efficiency in production and pricing strategies, indicating a healthy financial performance.