American States Water Company (AWR)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	124,921	78,396	94,347	86,425	84,342
Total stockholders’ equity	US$ in thousands	776,109	709,549	685,947	641,673	601,530
ROE		16.10%	11.05%	13.75%	13.47%	14.02%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $124,921K ÷ $776,109K
= 16.10%

American States Water Co.'s return on equity (ROE) has shown fluctuation over the past five years. In 2023, the ROE increased to 16.05%, demonstrating a significant improvement from the previous year's 11.02%. This suggests that the company's profitability in generating earnings from shareholders' equity has strengthened.

Comparing 2023 to 2021 and 2020, American States Water Co.'s ROE has shown an upward trend, indicating an improvement in efficiency in utilizing equity to generate profits. However, when compared to 2019, the ROE in 2023 has slightly decreased from 13.96% to 16.05%.

Overall, American States Water Co.'s ROE performance in 2023 reflects a positive trajectory, showcasing the company's ability to generate higher returns on shareholders' equity. Additional analysis, considering industry benchmarks and company-specific factors, would provide a more holistic understanding of the company's financial health and performance.