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', WTW's gross profit margin was 41.6%, showing profitability after production and operational costs. Industry average for Specialty Insurers in '2021' stood at 39.9%.
• In '2022', WTW's gross profit margin was 42.9%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Specialty Insurers in '2022' stood at 37.2%. Industry average declined by 2.7% from previous year.
• In '2023', WTW's gross profit margin was 43.6%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Specialty Insurers in '2023' stood at 44.9%. Industry average increased by 7.7% compared to previous year.
• In '2024', WTW's gross profit margin was 44.6%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Specialty Insurers in '2024' stood at 44.4%. Industry average declined by 0.5% from previous year.
Overall, WTW's gross profit margin has steadily improved over the past 4 years.

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

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