Essential Utilities Inc (WTRG)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,686,610	2,266,270	1,878,140	1,462,700	889,692
Revenue	US$ in thousands	2,053,820	2,288,030	1,878,140	1,462,700	889,692
Gross profit margin		82.12%	99.05%	100.00%	100.00%	100.00%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,686,610K ÷ $2,053,820K
= 82.12%

Essential Utilities Inc's gross profit margin has exhibited fluctuating trends over the past five years. In 2020 and 2019, the company achieved a perfect gross profit margin of 100%, indicating that it was able to generate significant revenues relative to its cost of goods sold. However, in the subsequent years, the gross profit margin decreased, reaching its lowest point in 2022 at 73.69%. The company managed to improve its gross profit margin in 2023 to 82.85%, but it still remains below the levels seen in 2020 and 2019. It is essential for Essential Utilities Inc to closely monitor its cost of goods sold and implement strategies to enhance operational efficiency in order to sustain or improve its gross profit margin in the future.