Essential Utilities Inc (WTRG)

Net 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
Net income (ttm)	US$ in thousands	595,314	546,007	556,681	572,564	498,226	477,710	466,272	457,295	465,237	466,811	448,676	447,299	431,612	417,813	423,042	416,757	284,849	246,369	279,126	259,400
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
Net profit margin		28.54%	27.84%	28.74%	29.52%	24.26%	20.95%	20.24%	19.75%	20.33%	22.04%	21.93%	22.43%	22.98%	23.00%	23.46%	23.27%	19.47%	20.28%	25.15%	27.47%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $595,314K ÷ $2,086,113K
= 28.54%

Essential Utilities Inc's net profit margin has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The net profit margin started at a high of 27.47% in March 2020, indicating that the company was able to convert 27.47% of its revenue into profit during that period.

However, there was a gradual decline in the net profit margin in the following quarters, reaching its lowest point of 19.47% in December 2020. This decline could suggest potential challenges the company faced in managing costs and expenses relative to its revenue during that time.

Subsequently, there was a recovery in the net profit margin, with improvements seen in March 2021 and June 2021, reaching 23.27% and 23.46%, respectively. The upward trend continued into September 2021 when the net profit margin was recorded at 23.00%.

From December 2021 to December 2023, the net profit margin fluctuated within a range of 19.75% to 28.54%, indicating some level of inconsistency in the profitability of the company during this period.

Notably, there was a significant increase in the net profit margin to 29.52% in March 2024, showcasing a strong performance in converting revenue to profit during that quarter. This improvement was followed by relatively stable margins around 27-28% until December 2024.

Overall, while Essential Utilities Inc experienced fluctuations in its net profit margin, the company managed to maintain a favorable margin range in most quarters, indicating its ability to efficiently generate profits relative to its revenue.