American Water Works (AWK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 98.67% | 98.82% | 98.80% | 98.79% | 98.77% | 98.81% | 98.83% | 98.86% | 98.92% | 99.17% | 99.17% | 99.18% | 99.19% | 98.88% | 98.87% | 98.85% | 98.84% | 98.87% | 98.85% | 98.85% |
| Operating profit margin | 36.95% | 35.91% | 35.72% | 35.76% | 35.68% | 35.55% | 35.41% | 34.14% | 33.63% | 27.03% | 26.44% | 26.16% | 25.58% | 31.59% | 32.16% | 32.41% | 32.96% | 32.47% | 32.27% | 32.20% |
| 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% |
| Net profit margin | 22.61% | 21.83% | 22.00% | 22.34% | 22.40% | 22.31% | 22.18% | 21.49% | 21.66% | 28.92% | 28.39% | 27.78% | 27.01% | 19.45% | 19.20% | 18.80% | 18.73% | 17.78% | 17.42% | 17.38% |
American Water Works has shown consistently high gross profit margins ranging from 98.7% to 99.2% over the past few years, indicating efficient cost management in generating revenue. The operating profit margin has fluctuated but generally improved from 2020 to 2024, reaching 36.95% at the end of 2024, showcasing the company's ability to control operating expenses and increase profitability from its core operations.
The pretax margin has seen significant variability, with a notable increase in 2021 and 2022, followed by a decrease in 2023 and recovery in 2024. This indicates fluctuations in the company's ability to generate profits before accounting for income taxes. The net profit margin also displays fluctuations, with a peak in 2021 and subsequent decline in the following years, showcasing the impact of taxes and other factors on the company's bottom line profitability.
Overall, American Water Works' profitability ratios reflect a well-managed cost structure and operational efficiency, with some volatility in pretax and net margins over the analyzed period. Continued monitoring and analysis of these ratios will be essential to assess the company's financial performance and sustainability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.20% | 3.09% | 3.06% | 3.08% | 3.12% | 3.09% | 3.03% | 2.94% | 2.95% | 4.86% | 4.89% | 5.01% | 4.84% | 3.01% | 3.00% | 2.93% | 2.86% | 2.71% | 2.66% | 2.68% |
| Return on total capital | 16.63% | 15.61% | 15.29% | 15.34% | 15.35% | 14.81% | 14.71% | 13.85% | 16.55% | 15.88% | 15.98% | 16.26% | 16.39% | 18.05% | 18.76% | 18.81% | 6.83% | 18.57% | 18.65% | 18.76% |
| Return on equity (ROE) | 10.17% | 9.49% | 9.42% | 9.58% | 9.64% | 9.30% | 9.22% | 8.71% | 10.66% | 16.99% | 17.16% | 17.27% | 17.31% | 11.11% | 11.20% | 10.91% | 10.99% | 10.17% | 10.07% | 10.12% |
American Water Works has shown consistent profitability over the analyzed periods based on various profitability ratios:
1. Operating Return on Assets (Operating ROA): This ratio indicates the efficiency of the company in generating profits from its operations relative to its total assets. American Water Works has maintained a stable Operating ROA in the range of 4.55% to 5.23% over the analyzed periods, showing the company's ability to effectively utilize its assets to generate operating income.
2. Return on Assets (ROA): ROA measures the overall profitability of the company by showing how efficient management is at using its assets to generate earnings. American Water Works has shown fluctuating ROA figures over the periods, ranging from 2.66% to 5.01%. The increase in ROA in some periods indicates improved profitability relative to total assets during those times.
3. Return on Total Capital: This ratio evaluates the company's ability to generate returns to all of its capital, including debt and equity. American Water Works has demonstrated a varying trend in Return on Total Capital, ranging from 6.83% to 18.81%. The fluctuation may suggest changes in the company's capital structure or operational efficiency over the analyzed periods.
4. Return on Equity (ROE): ROE shows the return generated on shareholders' equity, reflecting the company's ability to generate profits from the shareholders' investments. American Water Works has shown a mixed trend in ROE from 8.71% to 17.31%, indicating fluctuations in profitability relative to shareholders' equity.
Overall, American Water Works has maintained stable profitability ratios in terms of ROA, Operating ROA, and ROE, while the Return on Total Capital has shown more variability. This suggests that the company has been efficiently utilizing its assets and generating satisfactory returns for its shareholders over the analyzed periods.