American States Water Company (AWR)

Return on assets (ROA)

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
Total assets US$ in thousands 2,500,210 2,246,120 2,034,370 1,900,980 1,791,600
ROA 4.77% 5.56% 3.85% 4.96% 4.82%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $119,268K ÷ $2,500,210K
= 4.77%

American States Water Company's return on assets (ROA) has shown fluctuation over the past five years. In December 2020, the ROA was reported at 4.82%, indicating that the company generated $0.0482 in profit for every dollar of assets it had. The ROA slightly increased to 4.96% by December 2021, suggesting improved efficiency in asset utilization.

However, the ROA declined to 3.85% by December 2022, which may raise concerns about the company's ability to generate profits from its assets efficiently. The following year, in December 2023, the ROA experienced a significant improvement, reaching 5.56%. This jump in ROA suggests that American States Water Company managed to enhance its profitability relative to its asset base.

In the latest period, December 2024, the ROA decreased slightly to 4.77%. While this is a decline from the previous year, the company still maintained a decent level of profitability compared to its assets. Overall, American States Water Company's ROA performance indicates some variability but generally reflects a reasonable ability to generate profits relative to the company's asset base. It is important for stakeholders to continue monitoring the company's ROA trend to assess its long-term financial sustainability and efficiency.