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.