American Water Works (AWK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,718,000 | 1,617,000 | 1,552,000 | 1,535,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 11,807,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,332,000 | 10,362,000 | 10,152,000 | 10,007,000 | 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 |
| Return on total capital | 16.63% | 15.61% | 15.29% | 15.34% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,718,000K ÷ ($—K + $10,332,000K)
= 16.63%
American Water Works return on total capital has exhibited some fluctuations over the past few years. The ratio ranged between 6.83% and 18.81% during the period from March 31, 2020, to June 30, 2024.
The return on total capital peaked at 18.81% on March 31, 2021, and exhibited a generally declining trend thereafter, reaching a low of 13.85% on March 31, 2023. However, the ratio showed signs of recovery in the subsequent periods, with an uptick observed towards the end of 2024, reaching 16.63% on December 31, 2024.
Overall, the return on total capital for American Water Works demonstrates variability but generally indicates the company's ability to generate profits from its total invested capital, albeit with some fluctuations in performance over the analyzed period.
Peer comparison
Dec 31, 2024