American Water Works (AWK)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,653,000 | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 |
| Total assets | US$ in thousands | 32,830,000 | 30,298,000 | 27,787,000 | 26,075,000 | 24,766,000 |
| Total asset turnover | 0.14 | 0.14 | 0.14 | 0.18 | 0.15 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,653,000K ÷ $32,830,000K
= 0.14
American Water Works' total asset turnover has shown some fluctuations over the past five years. The ratio stood at 0.15 on December 31, 2020, increased to 0.18 by December 31, 2021, but then decreased to 0.14 in the subsequent years of 2022, 2023, and 2024.
A total asset turnover ratio of 0.15 to 0.18 indicates that for every dollar of assets invested, the company generated $0.15 to $0.18 of revenue during the respective years.
The decrease in total asset turnover from 2021 to 2024 suggests that American Water Works may be experiencing challenges in effectively utilizing its assets to generate revenue efficiently. It would be advisable for the company to closely monitor and potentially optimize its asset management strategies in order to improve its operational efficiency.
Peer comparison
Dec 31, 2024