American Water Works (AWK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,797,000 | 7,693,000 | 7,298,000 | 6,454,000 | 6,121,000 |
| ROE | 9.64% | 10.66% | 17.31% | 10.99% | 10.15% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $944,000K ÷ $9,797,000K
= 9.64%
American Water Works Co. Inc.'s return on equity (ROE) has exhibited some variability over the past five years. In 2023, the ROE stands at 9.64%, a decrease from the previous year's 10.66%. This decline may indicate a potential drop in the company's ability to generate profits from shareholders' equity.
Comparing the most recent ROE to historical data, there is a notable decrease from the higher levels seen in 2021 (17.31%) and 2020 (10.99%). Despite this, the current ROE remains higher than that of 2019 (10.15%).
The fluctuation in ROE suggests that American Water Works Co. Inc. may be experiencing changes in its profitability and efficiency in utilizing shareholder funds. Investors and stakeholders should further investigate the reasons behind the recent decline in ROE to assess the company's financial health and performance.
Peer comparison
Dec 31, 2023