American Water Works (AWK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 944,000 | 820,000 | 1,263,000 | 709,000 | 621,000 |
| Total assets | US$ in thousands | 30,298,000 | 27,787,000 | 26,075,000 | 24,766,000 | 22,682,000 |
| ROA | 3.12% | 2.95% | 4.84% | 2.86% | 2.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $944,000K ÷ $30,298,000K
= 3.12%
American Water Works Co. Inc.'s return on assets (ROA) has fluctuated over the past five years, ranging from a low of 2.74% in 2019 to a high of 4.84% in 2021. The company's ROA increased to 3.12% in 2023, indicating that it generated a higher level of net income relative to its total assets compared to the previous year. This improvement suggests that American Water Works Co. Inc. is becoming more efficient in utilizing its assets to generate profits. However, it is important to consider the reasons behind the fluctuations in ROA and assess whether these changes are sustainable or temporary in nature. Monitoring the trend of ROA over time can help stakeholders evaluate the company's overall performance and efficiency in generating returns from its invested assets.
Peer comparison
Dec 31, 2023