American Water Works (AWK)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,504,000	1,466,000	1,427,000	1,322,000	1,273,000	1,232,000	1,210,000	1,213,000	1,196,000	1,239,000	1,255,000	1,238,000	1,248,000	1,209,000	1,182,000	1,171,000	1,170,000	1,194,000	1,123,000	1,123,000
Revenue (ttm)	US$ in thousands	4,215,000	4,124,000	4,030,000	3,872,000	3,785,000	4,558,000	4,576,000	4,636,000	4,676,000	3,922,000	3,902,000	3,820,000	3,786,000	3,724,000	3,663,000	3,637,000	3,606,000	3,556,000	3,517,000	3,488,000
Operating profit margin		35.68%	35.55%	35.41%	34.14%	33.63%	27.03%	26.44%	26.16%	25.58%	31.59%	32.16%	32.41%	32.96%	32.47%	32.27%	32.20%	32.45%	33.58%	31.93%	32.20%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,504,000K ÷ $4,215,000K
= 35.68%

American Water Works Co. Inc. has shown a consistent improvement in its operating profit margin over the past eight quarters. The trend displays a positive trajectory, increasing from 31.23% in Q1 2022 to 35.50% in Q4 2023. This indicates that the company has been effectively managing its operating expenses and generating more profit from its core operations over time. The steady growth in operating profit margin reflects positively on the company's efficiency and profitability, suggesting a favorable financial performance and effective cost control measures.