American Water Works (AWK)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,051,000 | 983,000 | 956,000 | 959,000 | 944,000 | 920,000 | 894,000 | 832,000 | 820,000 | 1,318,000 | 1,299,000 | 1,288,000 | 1,263,000 | 763,000 | 749,000 | 718,000 | 709,000 | 662,000 | 638,000 | 632,000 |
| Total assets | US$ in thousands | 32,830,000 | 31,790,000 | 31,215,000 | 31,086,000 | 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,051,000K ÷ $32,830,000K
= 3.20%
American Water Works' return on assets (ROA) has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2021, the ROA increased steadily from 2.68% to 4.84%, indicating an improvement in the company's ability to generate profit from its assets.
However, there was a significant jump in ROA to 5.01% on March 31, 2022, followed by a decrease to 2.95% by December 31, 2022. This fluctuation suggests some variability in the company's profitability and asset utilization during this period.
Subsequently, there was a slight increase in ROA over the next few quarters, reaching 3.20% by December 31, 2024. This improvement indicates a potential rebound in the company's efficiency in generating profits from its assets.
Overall, American Water Works' ROA has shown both positive and negative trends over the analyzed period, reflecting the company's effectiveness in managing its assets to generate returns for its shareholders. The company may need to focus on maintaining or improving its ROA to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024