American States Water Company (AWR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	124,921	123,122	117,211	98,641	78,396	80,117	82,616	89,241	94,347	94,208	92,585	91,621	86,425	82,914	84,390	85,562	84,342	81,431	76,377	65,941
Total assets	US$ in thousands	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	1,641,330	1,604,380	1,567,280	1,526,100
ROA		5.56%	5.58%	5.48%	4.79%	3.85%	4.04%	4.24%	4.66%	4.96%	5.02%	5.03%	5.11%	4.82%	4.80%	4.97%	5.15%	5.14%	5.08%	4.87%	4.32%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $124,921K ÷ $2,246,120K
= 5.56%

American States Water Co. has shown a consistent increase in return on assets (ROA) in recent quarters, with the ROA ranging from 3.84% in Q4 2022 to 5.57% in Q3 2023. This indicates the company's ability to generate profits relative to its total assets. The upward trend in ROA demonstrates the company's efficiency in utilizing its assets to generate earnings. However, the slight decrease in Q4 2023 from the previous quarter's peak could be a signal for caution and warrants further investigation into the company's asset management strategies. Overall, the positive trajectory of ROA reflects well on American States Water Co.'s operational performance and financial health.