American Water Works (AWK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,797,000 | 9,897,000 | 9,701,000 | 9,547,000 | 7,693,000 | 7,758,000 | 7,570,000 | 7,460,000 | 7,298,000 | 6,866,000 | 6,690,000 | 6,583,000 | 6,454,000 | 6,512,000 | 6,338,000 | 6,243,000 | 6,121,000 | 6,190,000 | 6,027,000 | 5,932,000 |
| ROE | 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% | 10.15% | 10.26% | 9.66% | 9.68% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $944,000K ÷ $9,797,000K
= 9.64%
The return on equity (ROE) of American Water Works Co. Inc. has shown some variability over the past eight quarters. In Q4 2023, the ROE stood at 9.64%, which is slightly higher than the previous quarter's 9.30%. However, compared to the same period in the previous year (Q4 2022), the ROE has decreased from 10.66%.
Looking at the trend over the past two years, the ROE has been gradually declining from Q2 2022 to Q4 2023. Specifically, it has decreased from highs of 17.16% and 17.27% in Q3 and Q2 2022, respectively, to the current levels in Q4 2023. This downward trend indicates that the company's profitability in generating returns for its shareholders has been weakening over time.
It is important for stakeholders to closely monitor this trend and assess the factors contributing to the decreasing ROE to ensure sustainable and long-term financial performance and shareholder value for American Water Works Co. Inc.
Peer comparison
Dec 31, 2023