American Water Works (AWK)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,504,000 | 1,273,000 | 1,196,000 | 1,248,000 | 1,214,000 |
| Revenue | US$ in thousands | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 | 3,606,000 |
| Operating profit margin | 35.67% | 33.66% | 25.57% | 33.04% | 33.67% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,504,000K ÷ $4,217,000K
= 35.67%
American Water Works Co. Inc.'s operating profit margin has shown fluctuations over the past five years. In 2023, the operating profit margin was 35.50%, which represented an increase from the previous year's margin of 33.57%. This improvement indicates that the company was able to generate a higher percentage of profits relative to its revenue in 2023.
Comparing the operating profit margin in 2023 to that of 2021 and 2020, we observe a steady increase over the two years, with margins of 30.43% and 33.04% respectively. This suggests that the company's operational efficiency improved significantly during this period.
However, when comparing the operating profit margin in 2023 to 2019, there was a slight decline from 33.35% to 35.50%. Despite this dip, the margin remained relatively high, indicating that the company has been able to maintain a strong profitability performance.
In conclusion, American Water Works Co. Inc. has demonstrated a consistent track record of strong operating profit margins, showcasing its ability to efficiently convert revenue into profits over the years. This trend highlights the company's operational effectiveness and financial health.
Peer comparison
Dec 31, 2023