Revenue Analysis
Total and Operating Revenue: Total Revenue has displayed steady growth over the observed quarters, from $2,483 billion in 2023-06-30 to $2,771 billion in 2024-03-31. Operating Revenue followed a similar trend, increasing from $2,368 billion to $2,780 billion over the same period. This consistent growth suggests a positive market and operational expansion.
Gross Profit Margins: Gross Profit increased from $1,503 billion in 2023-06-30 to $1,692 billion in 2024-03-31. The Gross Profit Margin has shown a slight fluctuation but generally has maintained a robust level, indicating effective management of direct costs.
Cost Management
Cost of Revenue: Cost of Revenue grew from $980 million to $1,079 billion from 2023-06-30 to 2024-03-31, in line with revenue growth, pointing to stable cost control in direct expense management.
Operating Expense: Operating Expense saw an increase from $633 million in 2023-06-30 to $680 million in 2024-03-31, which is proportional to the expansion in operational scale.
Total Expenses: Consistently rising from $1,613 billion to $1,759 billion through the periods in focus, reflecting the overall growth in business operations and expansion activities.
Profitability Analysis
EBITDA: EBITDA increased significantly from $1,577 billion in 2023-06-30 to $1,752 billion in 2024-03-31. This growth indicates strong underlying operational profitability.
Operating Income: Operating Income has shown consistent growth, from $870 million in 2023-06-30 to $1,012 billion in 2024-03-31, underscoring effective operational control and profitability enhancement.
Pretax Income: Exhibited growth from $756 million to $855 million over the observed periods. This gain reflects increased earnings before tax obligations, showcasing effective management and operational efficiency.
Net Income: There was a declining trend in Net Income from $927 million in 2023-03-31 to $632 million in 2024-03-31. While growth was observed in earlier quarters, recent reductions might indicate rising costs or one-time financial adjustments.
Cash Flow Indicators
Reconciled Depreciation: Gradual increase from $515 million to $548 million from 2023-06-30 to 2024-03-31, which reflects ongoing capital expenditures and asset utilization.
Interest Expense: Fluctuated with an increase from $306 million to $349 million over the periods, suggesting increased borrowing possibly linked to financing growth activities.
Taxation
Tax Rate: There has been a variation in the Tax Rate for Calcs, ranging approximately from 20% to 23%, implying variability in taxable income and tax planning strategies.
Tax Provision: Increased from $175 million in 2023-06-30 to $193 million in 2024-03-31, aligning with the growth in pretax profits.
Tax Effect of Unusual Items: Noticeable variances were observed, for instance, a decrease from $12,365,223 in 2023-12-31 to $5,417,544 in 2024-03-31, possibly reflecting the non-recurring gains or charges affecting the tax calculations.
Shareholder Metrics
Diluted and Basic EPS: There has been a continuous presence of EPS, with variations such as $0.54 in 2023-09-30 to $0.52 in 2024-03-31.
Average Shares: Both Diluted and Basic Average Shares show minor fluctuations, which indicate stable shareholder equity structure.
Net Income Available to Common Stockholders: Slightly decreased from $653 million in 2023-09-30 to $631 million in 2024-03-31, which might affect investor sentiment.
Conclusion
WMB has shown strong growth in revenues and operating income, reflecting robust operational capabilities. However, the recent decline in net income and consistent tax burdens need strategic attention. Expansion in assets and increased borrowing are evident, requiring careful financial planning to sustain profitability and shareholder value.