American States Water Company (AWR)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 184,483 180,669 177,352 184,549 196,740 189,475 178,064 153,436 126,636 129,039 131,483 135,013 140,977 140,237 137,260 135,129 130,499 125,946 128,863 132,577
Total assets US$ in thousands 2,500,210 2,420,620 2,348,320 2,292,900 2,246,120 2,205,230 2,139,640 2,060,370 2,034,370 1,982,580 1,949,650 1,913,930 1,900,980 1,874,800 1,842,360 1,792,820 1,791,600 1,726,420 1,697,970 1,660,890
Operating ROA 7.38% 7.46% 7.55% 8.05% 8.76% 8.59% 8.32% 7.45% 6.22% 6.51% 6.74% 7.05% 7.42% 7.48% 7.45% 7.54% 7.28% 7.30% 7.59% 7.98%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $184,483K ÷ $2,500,210K
= 7.38%

Operating ROA for American States Water Company has shown some fluctuations over the past few years. The ratios ranged from a high of 8.76% in December 2023 to a low of 6.22% in December 2022. Despite the fluctuations, the company has generally maintained a moderate level of operating return on assets, indicating its ability to generate operating income from its assets.

The average operating ROA over the period seems to be around 7.50%. This suggests that, on average, for every dollar of assets the company holds, it generates approximately $0.075 in operating income. It is important to note that a higher operating ROA is generally preferred as it signifies more efficient asset utilization and profitability.

Investors and analysts should keep monitoring the trend in operating ROA to assess the company's operational efficiency and effectiveness in generating returns from its asset base. Additionally, comparing American States Water Company's operating ROA with industry benchmarks and peers can provide valuable insights into its performance relative to competitors in the sector.