American Water Works (AWK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 22,682,000 | 22,238,000 | 21,854,000 | 21,464,000 |
| Operating ROA | 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% | 5.16% | 5.37% | 5.14% | 5.23% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,504,000K ÷ $30,298,000K
= 4.96%
American Water Works Co. Inc. has shown a relatively stable trend in its operating return on assets (operating ROA) over the past eight quarters. The operating ROA has ranged from 4.54% in Q3 2022 to 4.96% in Q4 2023, with a generally increasing trend in recent quarters. This indicates that the company has been able to generate more operating income relative to its total assets, reflecting effective asset utilization and operational efficiency.
The upward trend in operating ROA suggests that American Water Works Co. Inc. has been improving its operational performance and efficiency over the analyzed period. This could be attributed to factors such as cost control measures, revenue growth, effective asset management, or operational improvements.
However, it is important to note that while the increasing trend in operating ROA is a positive sign, it should be analyzed in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the company's overall financial performance and sustainability. Additional analysis of profitability, liquidity, leverage, and market factors would provide a more holistic view of American Water Works Co. Inc.'s financial health and operational efficiency.
Peer comparison
Dec 31, 2023