American Water Works (AWK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,196,000 | 1,008,000 | 1,640,000 | 924,000 | 833,000 |
| Revenue | US$ in thousands | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 | 3,606,000 |
| Pretax margin | 28.36% | 26.65% | 35.07% | 24.46% | 23.10% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,196,000K ÷ $4,217,000K
= 28.36%
The pretax margin of American Water Works Co. Inc. has shown fluctuations over the past five years. In 2023, the pretax margin improved to 28.25%, rising from 26.58% in 2022. This indicates that the company was able to generate more income before accounting for taxes relative to its total revenue in 2023. However, compared to the high of 41.73% in 2021, the pretax margin in 2023 is lower.
The pretax margin in 2023 outperformed the levels seen in 2020 and 2019, showcasing an upward trend in recent years. It is important to note that a higher pretax margin generally reflects better cost management and operational efficiency, which can lead to higher profitability for the company.
Further analysis would be beneficial to understand the specific factors driving the changes in the pretax margin over these years and to assess the sustainability and future prospects of American Water Works Co. Inc.
Peer comparison
Dec 31, 2023