Essential Utilities Inc (WTRG)

Gross profit margin

		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	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	1,041,404	891,750	867,605	961,344	1,037,795	1,114,605	1,098,174	1,075,547	1,072,388	1,038,158	1,003,959	989,947	987,302	971,965	970,677	958,501	768,342	685,072	650,947	570,950
Revenue (ttm)	US$ in thousands	2,086,113	1,961,149	1,937,149	1,939,443	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
Gross profit margin		49.92%	45.47%	44.79%	49.57%	50.53%	48.89%	47.68%	46.46%	46.87%	49.01%	49.08%	49.65%	52.57%	53.51%	53.83%	53.53%	52.53%	56.40%	58.66%	60.47%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,041,404K ÷ $2,086,113K
= 49.92%

The gross profit margin of Essential Utilities Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. Starting at 60.47% in March 2020, the gross profit margin gradually decreased to 44.79% by June 30, 2024, before recovering slightly to 49.92% by December 31, 2024.

The trend indicates a general decline in the company's ability to generate profit from its core business activities in the initial period, followed by some volatility in the margins. Factors such as changes in revenue, cost of goods sold, and operational efficiency may have contributed to these fluctuations. It is important for the company to closely monitor and address the drivers behind these changes to ensure sustainable profitability and operational effectiveness.