American States Water Company (AWR)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	166,520	102,060	124,770	114,622	109,012
Revenue	US$ in thousands	595,699	491,528	498,853	488,243	473,869
Pretax margin		27.95%	20.76%	25.01%	23.48%	23.00%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $166,520K ÷ $595,699K
= 27.95%

The pretax margin of American States Water Co. has shown fluctuations over the past five years. In 2023, the pretax margin increased significantly to 27.95% from 20.76% in 2022, indicating improved profitability before taxes. This substantial increase suggests that the company's ability to generate earnings from its operations has improved notably.

Comparing the 2023 pretax margin to 2021 and 2020, we see a positive trend in profitability, as the company achieved a higher pretax margin of 27.95% compared to 25.01% and 23.48%, respectively. This demonstrates an upward trajectory in the company's operational efficiency and cost management during this period.

Moreover, the 2023 pretax margin of 27.95% also surpassed the pretax margin of 23.00% in 2019, indicating consistent growth in profitability over the five-year period. This improvement signifies that American States Water Co. has been effectively managing its expenses and increasing its operational efficiency, resulting in higher pretax profits.

In conclusion, the upward trend in the pretax margin of American States Water Co. reflects its ability to enhance profitability before taxes over the years, showcasing effective cost management and operational performance.