American States Water Company (AWR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	119,268	124,921	78,396	94,347	86,425
Revenue	US$ in thousands	595,459	595,699	491,528	498,853	488,243
Net profit margin		20.03%	20.97%	15.95%	18.91%	17.70%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $119,268K ÷ $595,459K
= 20.03%

American States Water Company's net profit margin has shown variability over the past five years. The company experienced a steady increase in net profit margin from 17.70% as of December 31, 2020, to 18.91% as of December 31, 2021. However, in the following year, the net profit margin decreased to 15.95% as of December 31, 2022.

There was a notable recovery and improvement in profitability in the subsequent years, with the net profit margin reaching 20.97% as of December 31, 2023, and maintaining a strong level at 20.03% as of December 31, 2024. This positive trend towards higher profitability suggests effective cost management, revenue growth, or a combination of both contributing to the company's overall financial performance.

It is worth noting that the net profit margin helps evaluate the company's efficiency in generating profit from each dollar of revenue. The fluctuation in net profit margin over the years indicates the company's ability to adapt to changing market conditions and optimize its profitability levels. Further analysis of the company's financial statements and industry benchmarks can provide deeper insights into the factors influencing American States Water Company's net profit margin performance.