American States Water Company (AWR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.39% | 68.13% | 63.09% | 63.76% | 62.40% |
| Operating profit margin | 30.98% | 33.03% | 25.76% | 28.26% | 26.73% |
| Pretax margin | 25.10% | 27.95% | 20.76% | 25.01% | 23.48% |
| Net profit margin | 20.03% | 20.97% | 15.95% | 18.91% | 17.70% |
American States Water Company has shown consistent improvement in its gross profit margin over the years, increasing from 62.40% in 2020 to 66.39% in 2024. This indicates the company's ability to effectively manage its production costs and generate profits from its core operations.
Similarly, the operating profit margin has seen an upward trend, growing from 26.73% in 2020 to 30.98% in 2024. This demonstrates the company's efficiency in controlling its operating expenses and running its operations profitably.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. Despite some fluctuations, there is an overall positive trend from 23.48% in 2020 to 25.10% in 2024, indicating that American States Water Company has been able to improve its profitability at the pretax level over the years.
Lastly, the net profit margin, which represents the company's bottom-line profitability, has also shown improvement, increasing from 17.70% in 2020 to 20.03% in 2024. This suggests that after accounting for all expenses, including taxes, American States Water Company has been able to enhance its net profitability over the years.
Overall, the profitability ratios of American States Water Company demonstrate a positive trajectory, indicating efficient cost management, solid operational performance, and sustained profitability growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.38% | 8.76% | 6.22% | 7.42% | 7.28% |
| Return on assets (ROA) | 4.77% | 5.56% | 3.85% | 4.96% | 4.82% |
| Return on total capital | 11.82% | 15.48% | 11.17% | 13.44% | 12.68% |
| Return on equity (ROE) | 12.96% | 16.10% | 11.05% | 13.75% | 13.47% |
American States Water Company's profitability ratios exhibit fluctuations over the period from 2020 to 2024.
- Operating return on assets (Operating ROA) shows a slight increase from 7.28% in 2020 to 7.42% in 2021, followed by a decrease to 6.22% in 2022. However, it then significantly improves to 8.76% in 2023 before moderating to 7.38% in 2024.
- Return on assets (ROA) displays a similar trend, starting at 4.82% in 2020, increasing to 4.96% in 2021, but subsequently dropping to 3.85% in 2022. It then rises to 5.56% in 2023 before dipping to 4.77% in 2024.
- Return on total capital demonstrates a consistent positive trend from 12.68% in 2020, reaching 13.44% in 2021, 11.17% in 2022, and then experiencing a significant improvement to 15.48% in 2023, before settling at 11.82% in 2024.
- Return on equity (ROE) follows a similar trajectory, starting at 13.47% in 2020, increasing to 13.75% in 2021, decreasing to 11.05% in 2022, rising to 16.10% in 2023, and ending at 12.96% in 2024.
Overall, while Operating ROA and ROA exhibit some fluctuations, Return on total capital and ROE show more stability and positive trends over the period under consideration. Further analysis and comparison with industry peers may provide additional insights into the company's profitability performance.