Essential Utilities Inc (WTRG)

Gross profit margin

		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	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	1,686,610	2,242,792	2,269,460	2,288,001	2,266,274	2,099,707	2,035,172	1,988,452	1,878,144	1,780,910	1,772,263	1,763,979	1,462,698	1,028,664	993,584	897,900	889,692	869,397	851,908	844,876
Revenue (ttm)	US$ in thousands	2,053,824	2,279,788	2,303,151	2,315,207	2,288,032	2,118,336	2,045,578	1,993,854	1,878,144	1,816,455	1,803,242	1,790,678	1,462,698	1,214,742	1,109,721	944,145	889,692	869,397	851,908	844,876
Gross profit margin		82.12%	98.38%	98.54%	98.82%	99.05%	99.12%	99.49%	99.73%	100.00%	98.04%	98.28%	98.51%	100.00%	84.68%	89.53%	95.10%	100.00%	100.00%	100.00%	100.00%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,686,610K ÷ $2,053,824K
= 82.12%

Essential Utilities Inc's gross profit margin has shown fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the gross profit margin reached its peak at 82.85% and 75.35%, respectively. This indicates the company was able to generate a higher percentage of sales revenue after deducting the cost of goods sold in these periods.

However, in Q1 2023 and Q2 2023, the gross profit margin decreased to 72.76% and 74.06%, respectively. This decline could be attributed to factors such as increased costs of goods sold or pricing pressures impacting the company's profitability.

Comparing the latest quarter, Q4 2023, to the same period in the previous year, Q4 2022, the gross profit margin increased from 73.69% to 82.85%. This improvement suggests better cost management or pricing strategies implemented by Essential Utilities Inc during this timeframe.

Overall, the trend in the company's gross profit margin indicates varying levels of operational efficiency and profitability over the analyzed quarters. Stakeholders may want to further investigate the factors influencing these fluctuations to better understand Essential Utilities Inc's financial performance.