Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', SBS's gross profit margin was 34.3%, showing profitability after production and operational costs. Industry average for Water Supply in '2021' stood at 63.2%.
• In '2022', SBS's gross profit margin was 34.9%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Water Supply in '2022' stood at 43.9%. Industry average declined by 19.2% from previous year.
• In '2023', SBS's gross profit margin was 37.2%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Water Supply in '2023' stood at 42.5%. Industry average declined by 1.5% from previous year.
• In '2024', SBS's gross profit margin was 54.1%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Water Supply in '2024' stood at 55.2%. Industry average increased by 12.7% compared to previous year.
Overall, SBS's gross profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.