American Water Works (AWK)
Operating return on assets (Operating ROA)
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 |
Total assets | US$ in thousands | 30,298,000 | 27,787,000 | 26,075,000 | 24,766,000 | 22,682,000 |
Operating ROA | 4.96% | 4.58% | 4.59% | 5.04% | 5.35% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,504,000K ÷ $30,298,000K
= 4.96%
American Water Works Co. Inc.'s operating return on assets (operating ROA) has shown a downward trend over the past five years, with values declining from 5.31% in 2019 to 4.96% in 2023. This indicates that the company's ability to generate operating income from its assets has weakened. The decrease in operating ROA suggests that American Water Works may be facing challenges in efficiently utilizing its assets to generate profits. Further analysis of the company's operational efficiency and asset management practices may be warranted to address the declining trend in operating ROA.
Peer comparison
Dec 31, 2023
Company name
Symbol
Operating ROA
American Water Works
AWK
4.96%
American States Water Company
AWR
8.76%
California Water Service Group
CWT
1.68%
Essential Utilities Inc
WTRG
4.11%
Middlesex Water Company
MSEX
3.17%
SJW Corporation
SJW
3.44%