Essential Utilities Inc (WTRG)

Operating 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
Operating income (ttm)	US$ in thousands	757,668	705,015	687,331	697,294	692,097	688,085	676,541	659,027	661,187	630,803	606,394	597,986	602,709	595,969	599,750	593,541	434,686	387,150	388,387	346,217
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
Operating profit margin		36.32%	35.95%	35.48%	35.95%	33.70%	30.18%	29.37%	28.47%	28.90%	29.78%	29.64%	29.99%	32.09%	32.81%	33.26%	33.15%	29.72%	31.87%	35.00%	36.67%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $757,668K ÷ $2,086,113K
= 36.32%

Essential Utilities Inc's operating profit margin has shown a downward trend from March 31, 2020, to December 31, 2022, decreasing from 36.67% to 28.90%. This decline could indicate decreasing efficiency in generating profits from its operations during this period. However, from March 31, 2023, there has been a gradual improvement in the operating profit margin, increasing to 36.32% by December 31, 2024.

The average operating profit margin over this period was approximately 32.23%. It is important to note that a higher operating profit margin indicates that a company is able to control its production costs and management more effectively, leading to higher profitability. Monitoring this metric over time can provide insights into the company's operational efficiency and overall financial health.