Advanced Drainage Systems Inc (WMS)
Net profit margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 509,915 | 507,086 | 271,331 | 224,230 | -193,174 |
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Net profit margin | 17.70% | 16.51% | 9.80% | 11.34% | -11.83% |
March 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $509,915K ÷ $2,881,170K
= 17.70%
The net profit margin of Advanced Drainage Systems Inc has exhibited a fluctuating trend over the past five years, as indicated by the values of 17.70% in 2024, 16.51% in 2023, 9.80% in 2022, 11.34% in 2021, and -11.83% in 2020.
The company's net profit margin has generally been positive in recent years, with the highest margin of 17.70% achieved in 2024. This indicates that Advanced Drainage Systems Inc is able to effectively control its expenses relative to its revenue, resulting in a healthy level of profitability.
The variability in the net profit margin figures suggests potential changes in the company's cost structure, pricing strategies, or overall efficiency in generating profits. The significant negative net profit margin of -11.83% in 2020 may indicate a period of financial difficulty or exceptional circumstances that impacted profitability negatively.
Overall, the improving net profit margin trend from 2020 to 2024 reflects advancements in the company's cost management strategies and operational efficiency, highlighting its ability to generate profits relative to its revenue over the years.