Essential Utilities Inc (WTRG)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	692,097	661,187	602,709	434,686	340,159
Revenue	US$ in thousands	2,053,820	2,288,030	1,878,140	1,462,700	889,692
Operating profit margin		33.70%	28.90%	32.09%	29.72%	38.23%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $692,097K ÷ $2,053,820K
= 33.70%

Essential Utilities Inc's operating profit margin has exhibited fluctuations over the past five years. In 2023, the operating profit margin increased to 33.70%, marking a significant improvement from the prior year. This suggests that the company was more efficient in generating profits from its core operations in 2023 compared to 2022.

Comparing the latest operating profit margin to prior years, it is higher than the margins in 2022 and 2020, indicating improved profitability performance. However, it remains below the levels seen in 2019 when the margin was at its peak at 38.23%.

Overall, Essential Utilities Inc has shown varying levels of operating efficiency in recent years, with the 2023 margin reflecting a positive trend. Monitoring this ratio over time can provide valuable insights into the company's operational effectiveness and financial health.