American Water Works (AWK)

Return on assets (ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	621,000	635,000	582,000	574,000
Total assets	US$ in thousands	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	22,682,000	22,238,000	21,854,000	21,464,000
ROA		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%	2.74%	2.86%	2.66%	2.67%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $944,000K ÷ $30,298,000K
= 3.12%

American Water Works Co. Inc. has exhibited a relatively stable return on assets (ROA) over the past eight quarters. The ROA ranged from a low of 2.94% in Q1 2023 to a high of 5.01% in Q2 2022. The company's ROA has generally stayed above 3% with occasional fluctuations. The decrease in ROA from 4.89% in Q2 2022 to 2.95% in Q4 2022 is notable. Overall, the trend suggests a consistent ability to generate profits from its assets, albeit with some variability. Monitoring this ratio over time can help assess the company's efficiency in generating earnings relative to its total assets.