American Water Works (AWK)

Net profit margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands 944,000 820,000 1,263,000 709,000 621,000
Revenue US$ in thousands 4,217,000 3,782,000 4,677,000 3,777,000 3,606,000
Net profit margin 22.39% 21.68% 27.00% 18.77% 17.22%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $944,000K ÷ $4,217,000K
= 22.39%

American Water Works Co. Inc. has shown a consistent trend of net profit margin improvement over the past five years. The net profit margin increased from 17.20% in 2019 to 22.30% in 2023, indicating the company's ability to generate more profit from its revenue. This suggests that the company has been effectively managing its costs and expenses, resulting in higher profitability.

The significant improvement in net profit margin from 2020 to 2021, where it jumped from 18.77% to 32.14%, is noteworthy. This may have been driven by various factors such as increased efficiency, cost control measures, or revenue growth.

Overall, the upward trajectory of American Water Works Co. Inc.'s net profit margin signifies a positive trend in the company's financial performance and operational efficiency over the years. Investors and stakeholders may view this growth favorably as it demonstrates the company's ability to translate its revenue into profits effectively.


Peer comparison

Dec 31, 2023