American States Water Company (AWR)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	166,520	161,263	154,165	128,596	102,060	106,312	110,329	118,211	124,770	124,432	121,976	121,831	114,622	108,265	110,101	110,823	109,012	106,104	98,584	84,704
Revenue (ttm)	US$ in thousands	595,699	595,886	579,174	544,381	491,528	482,785	484,556	490,363	498,853	506,429	503,362	496,226	488,243	477,036	477,844	481,213	473,869	471,881	461,567	443,821
Pretax margin		27.95%	27.06%	26.62%	23.62%	20.76%	22.02%	22.77%	24.11%	25.01%	24.57%	24.23%	24.55%	23.48%	22.70%	23.04%	23.03%	23.00%	22.49%	21.36%	19.09%

December 31, 2023 calculation

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

Analyzing American States Water Co.'s pretax margin over the past eight quarters reveals fluctuations in the company's profitability before taxes. The pretax margin for Q4 2023 stood at 27.95%, representing a slight increase from the previous quarter. This trend of improvement is consistent with the gradual rise seen in the preceding quarters, showcasing the company's ability to manage its operating expenses efficiently.

Comparing the latest quarter to Q1 2022, it is evident that American States Water Co. has made significant progress in enhancing its pretax margin, with an increase of approximately 4.33 percentage points. This upward trajectory is a positive indicator of the company's operational performance and profitability.

Although there have been fluctuations in the pretax margin over the analyzed periods, the overall trend suggests a positive outlook for American States Water Co. The steady improvement in profitability metrics reflects the company's strategic focus on cost management and revenue generation, positioning it well for sustained financial health in the long term.