American Water Works (AWK)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,718,000 | 1,504,000 | 1,273,000 | 1,196,000 | 1,248,000 |
| Revenue | US$ in thousands | 4,653,000 | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 |
| Operating profit margin | 36.92% | 35.67% | 33.66% | 25.57% | 33.04% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,718,000K ÷ $4,653,000K
= 36.92%
In analyzing American Water Works' operating profit margin over the past five years, we observe a fluctuating trend. In December 2020, the operating profit margin stood at 33.04%, indicating a strong operational performance. However, this margin slightly declined to 25.57% by December 2021, suggesting potential challenges or shifts in the company's cost structure.
Subsequently, there was a significant improvement in the operating profit margin, reaching 33.66% by December 2022, showcasing a rebound in profitability. The trend continued to strengthen with margins of 35.67% in December 2023 and further to 36.92% by December 2024, reflecting enhanced operational efficiency and potentially effective cost management strategies.
Overall, the company's operating profit margin displays some volatility but generally demonstrates a positive trajectory, showing improvements over the years. This trend may imply effective cost control measures or revenue growth strategies implemented by American Water Works to enhance its profitability.
Peer comparison
Dec 31, 2024