American Water Works (AWK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,718,000 | 1,617,000 | 1,552,000 | 1,535,000 | 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 |
| Total assets | US$ in thousands | 32,830,000 | 31,790,000 | 31,215,000 | 31,086,000 | 30,298,000 | 29,818,000 | 29,496,000 | 28,286,000 | 27,787,000 | 27,126,000 | 26,574,000 | 25,694,000 | 26,075,000 | 25,333,000 | 24,952,000 | 24,525,000 | 24,766,000 | 24,394,000 | 24,009,000 | 23,546,000 |
| Operating ROA | 5.23% | 5.09% | 4.97% | 4.94% | 4.96% | 4.92% | 4.84% | 4.67% | 4.58% | 4.54% | 4.55% | 4.72% | 4.59% | 4.89% | 5.03% | 5.05% | 5.04% | 4.96% | 4.92% | 4.97% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,718,000K ÷ $32,830,000K
= 5.23%
American Water Works' operating return on assets (operating ROA) has shown some fluctuation over the quarters studied. The operating ROA ranged from a low of 4.54% on June 30, 2022, to a high of 5.23% on December 31, 2024. The overall trend indicates a generally positive performance in generating operating income relative to its assets, with some variability in the interim quarters.
Notably, there was a consistent increase in operating ROA from the low point in mid-2022 to the peak at the end of 2024. This upward trajectory suggests the company's ability to improve efficiency in generating earnings from its asset base over time. However, it is essential to monitor the recent decrease observed in the last quarter of 2024 to understand whether this represents a temporary fluctuation or a potential shift in the company's operational performance.
Overall, the trend in American Water Works' operating ROA reflects a mix of stability and improvement in its operating efficiency, showcasing its ability to generate returns from its assets. Further analysis of the underlying factors driving these changes can provide a more in-depth understanding of the company's financial performance.
Peer comparison
Dec 31, 2024