American States Water Company (AWR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	196,740	126,636	140,977	130,499	127,073
Total assets	US$ in thousands	2,246,120	2,034,370	1,900,980	1,791,600	1,641,330
Operating ROA		8.76%	6.22%	7.42%	7.28%	7.74%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $196,740K ÷ $2,246,120K
= 8.76%

The operating return on assets (ROA) for American States Water Co. has fluctuated over the past five years. In 2023, the operating ROA improved to 8.75%, compared to 5.63% in 2022 and 6.79% in 2021. This indicates that the company was able to generate more operating income relative to its assets in 2023.

However, it's worth noting that the 2023 operating ROA of 8.75% was lower than the 7.30% recorded in 2019, suggesting a slight decline in efficiency in utilizing assets to generate operating income.

Overall, the trend in operating ROA for American States Water Co. shows some variability, but the company has generally been effective in generating operating income relative to its asset base, with the most recent year showing an improvement in this aspect.