American Water Works (AWK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,504,000 | 1,466,000 | 1,427,000 | 1,322,000 | 1,273,000 | 1,232,000 | 1,210,000 | 1,213,000 | 1,196,000 | 1,239,000 | 1,255,000 | 1,238,000 | 1,248,000 | 1,209,000 | 1,182,000 | 1,171,000 | 1,170,000 | 1,194,000 | 1,123,000 | 1,123,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 11,807,000 | — | — | — | 9,770,000 | — | — | — |
| 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 |
| Return on total capital | 15.35% | 14.81% | 14.71% | 13.85% | 16.55% | 15.88% | 15.98% | 16.26% | 16.39% | 18.05% | 18.76% | 18.81% | 6.83% | 18.57% | 18.65% | 18.76% | 7.36% | 19.29% | 18.63% | 18.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,504,000K ÷ ($—K + $9,797,000K)
= 15.35%
American Water Works Co. Inc.'s return on total capital has been relatively stable over the past eight quarters, averaging around 6.46%. The company has shown consistency in generating returns on its total capital investment, with the latest quarter (Q4 2023) reporting a return of 6.78%. This demonstrates the efficiency of the company in utilizing its total capital to generate profits. The trend indicates a steady performance in maximizing returns for its stakeholders over the observed period. Investors and stakeholders can view this as a positive indicator of the company's ability to generate value from its capital resources.
Peer comparison
Dec 31, 2023