Advanced Drainage Systems Inc (WMS)

Net 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
Net income (ttm) US$ in thousands 450,172 467,837 492,245 497,665 509,915 500,986 477,387 493,592 507,086 467,500 459,138 382,490 271,331 244,778 224,874 229,751 224,230 206,781 176,295 103,648
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
Net profit margin 15.50% 15.90% 16.89% 17.09% 17.74% 17.65% 16.86% 16.82% 16.51% 14.93% 14.38% 12.69% 9.80% 9.66% 9.75% 10.72% 11.31% 10.83% 9.70% 5.86%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $450,172K ÷ $2,904,245K
= 15.50%

The net profit margin of Advanced Drainage Systems Inc has shown positive trends over the analyzed period from June 30, 2020, to March 31, 2025. The margin started at 5.86% in June 2020 and gradually increased to 15.50% by March 2025.

The net profit margin indicates the company's profitability after all expenses have been deducted from revenues. An increasing trend in the net profit margin implies that the company is effectively controlling its costs and expenses relative to its sales, resulting in higher profitability per dollar of revenue generated.

Advanced Drainage Systems Inc's net profit margin has demonstrated a generally upward trajectory, with fluctuations in some periods, suggesting the company's ability to enhance operational efficiency and generate more profit from its core business activities. The company's strong performance in maintaining and improving its net profit margin showcases its financial stability and effectiveness in managing its resources to maximize profitability.