Revenue Analysis:
Total Revenue showed growth over the last three quarters, from $684.674 million in Q1 to $819.474 million in Q4. Operating Revenue mirrored total revenue, indicating all revenue is from operating activities. Gross Profit maintained a consistent trend with total revenue, increasing from $400.294 million in Q1 to $501.114 million in Q4.
Cost Management:
Cost of Revenue increased from $284.38 million in Q1 to $318.36 million in Q4, akin to revenue trends. Operating Expense similarly showed an incremental increase from $226.126 million in Q1 to $236.891 million in Q4. Total Expenses paralleled these trends, marking an upward shift from $510.506 million in Q1 to $555.251 million in Q4, matching the revenue growth pattern.
Profitability Analysis:
EBITDA and Operating Income steadily increased, from $210.771 million and $174.168 million in Q1 respectively to $316.363 million and $264.223 million in Q4. Pretax Income also rose from $165.173 million in Q1 to $237.6 million in Q4. Net Income demonstrated significant growth, marking a jump from $140.923 million in the first quarter to $216.205 million by the final quarter of the year.
Cash Flow Indicators:
Reconciled Depreciation saw a slight increase across the year, indicating steady capital expenditure, from $31.154 million in Q1 to $48.06 million in Q4. Interest Expense also increased slightly from $14.444 million in Q1 to $30.703 million in Q4, possibly due to increased borrowings or higher interest rates.
Taxation:
Tax Provision increased corresponding to the rise in Pretax Income, from $24.25 million in Q1 to $21.395 million in Q4. The Tax Rate saw a fluctuation, with a peak at 0.165 in Q2 and a lower 0.090 by Q4, potentially due to changes in tax laws or more effective tax strategies.
Shareholder Metrics:
Diluted EPS increased from 2.38 in Q1 to 3.65 by Q4, whereas Basic EPS paralleled these figures, suggesting enhanced profitability per share held. The number of shares (both diluted and basic) remained relatively stable, reflecting consistency in the company’s equity base.
Conclusion:
WAT displayed a solid fiscal performance with increasing revenue and net incomes accompanied by controlled costs across the financial year. The firm manages its capital expense and tax obligations effectively. The stability in share count alongside rising earnings per share indicates strong shareholder returns. Given these indicators, the company appears well-positioned for sustainable growth.
Appendices:
Data tables and calculations referenced are derived directly from the quarterly financial statements provided.