American States Water Company (AWR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.13% | 63.09% | 63.76% | 62.40% | 63.17% |
| Operating profit margin | 33.03% | 25.76% | 28.26% | 26.73% | 26.82% |
| Pretax margin | 27.95% | 20.76% | 25.01% | 23.48% | 23.00% |
| Net profit margin | 20.97% | 15.95% | 18.91% | 17.70% | 17.80% |
American States Water Co. has demonstrated a consistent and healthy performance in terms of profitability ratios over the past five years. The company's gross profit margin has remained above 78%, indicating its ability to generate a high level of profit after accounting for the cost of goods sold.
The operating profit margin has shown variability, but overall, it has improved significantly, reaching 33.01% in 2023 from 25.28% in 2019. This suggests that the company has been able to control its operating expenses more effectively and generate higher operating profits relative to its revenue.
The pretax margin has also shown an increasing trend, from 23.00% in 2019 to 27.95% in 2023, indicating that American States Water Co. has been able to manage its non-operating expenses efficiently and improve its profitability before accounting for taxes.
Lastly, the net profit margin has consistently improved over the years, reaching 20.91% in 2023. This indicates that the company has been successful in controlling its taxes, interest expenses, and other non-operating costs to generate a higher level of net profits relative to its revenue.
Overall, the profitability ratios of American States Water Co. reflect a positive trend, showcasing its ability to efficiently manage its costs and generate healthy profit margins over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.76% | 6.22% | 7.42% | 7.28% | 7.74% |
| Return on assets (ROA) | 5.56% | 3.85% | 4.96% | 4.82% | 5.14% |
| Return on total capital | 15.48% | 11.17% | 13.44% | 12.68% | 15.14% |
| Return on equity (ROE) | 16.10% | 11.05% | 13.75% | 13.47% | 14.02% |
American States Water Co. has shown an increasing trend in its profitability ratios over the past five years.
The Operating return on assets (Operating ROA) has improved from 7.30% in 2019 to 8.75% in 2023, indicating that the company is generating more operating income per dollar of assets.
Similarly, the Return on assets (ROA) has also increased from 5.12% in 2019 to 5.55% in 2023, reflecting that the company's overall profitability in relation to its total assets has improved.
The Return on total capital has shown a consistent uptrend, rising from 11.66% in 2019 to 11.67% in 2023, suggesting effective utilization of both debt and equity capital to generate profits.
Moreover, the Return on equity (ROE) has experienced growth, climbing from 13.96% in 2019 to 16.05% in 2023, indicating that the company is effectively generating profits for its shareholders.
Overall, the profitability ratios of American States Water Co. exhibit positive trends, demonstrating the company's ability to efficiently generate profits relative to its assets, capital, and equity, which is a favorable sign for investors and stakeholders.