American Water Works (AWK)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,359,000 | 1,274,000 | 1,228,000 | 1,224,000 | 1,196,000 | 1,156,000 | 1,116,000 | 1,029,000 | 1,008,000 | 1,724,000 | 1,697,000 | 1,678,000 | 1,640,000 | 927,000 | 939,000 | 920,000 | 924,000 | 879,000 | 845,000 | 840,000 |
| Revenue (ttm) | US$ in thousands | 4,649,000 | 4,503,000 | 4,345,000 | 4,293,000 | 4,215,000 | 4,124,000 | 4,030,000 | 3,872,000 | 3,785,000 | 4,558,000 | 4,576,000 | 4,636,000 | 4,676,000 | 3,922,000 | 3,902,000 | 3,820,000 | 3,786,000 | 3,724,000 | 3,663,000 | 3,637,000 |
| Pretax margin | 29.23% | 28.29% | 28.26% | 28.51% | 28.37% | 28.03% | 27.69% | 26.58% | 26.63% | 37.82% | 37.08% | 36.19% | 35.07% | 23.64% | 24.06% | 24.08% | 24.41% | 23.60% | 23.07% | 23.10% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,359,000K ÷ $4,649,000K
= 29.23%
American Water Works has shown a consistent and generally positive trend in its pretax margin over the analyzed periods. The pretax margin stood around the mid-20% range in the initial period, gradually increasing to reach a peak of 37.82% by September 30, 2022. This substantial improvement indicates efficient cost management and revenue generation strategies implemented by the company.
However, in the subsequent periods, there was a slight decline in the pretax margin, dropping to around 26-29%, although still maintaining a relatively healthy level compared to the initial periods. This decline could be attributed to various factors such as increasing operating expenses, changes in revenue streams, or investments in new projects impacting profitability.
Overall, the fluctuations in American Water Works' pretax margin suggest a degree of volatility but also resilience in maintaining profitability over the analyzed periods. Investors and stakeholders may want to further investigate the factors driving these changes to assess the company's financial health and performance sustainability.
Peer comparison
Dec 31, 2024