American States Water Company (AWR)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	119,268	111,261	106,992	113,649	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
Total stockholders’ equity	US$ in thousands	920,051	879,466	833,477	800,493	776,109	771,337	755,066	730,848	709,549	705,504	694,225	687,425	685,947	678,935	664,134	649,393	641,673	633,820	619,288	604,583
ROE		12.96%	12.65%	12.84%	14.20%	16.10%	15.96%	15.52%	13.50%	11.05%	11.36%	11.90%	12.98%	13.75%	13.88%	13.94%	14.11%	13.47%	13.08%	13.63%	14.15%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $119,268K ÷ $920,051K
= 12.96%

American States Water Company's Return on Equity (ROE) has shown some fluctuations over the past few years, ranging from a low of 11.05% in December 2022 to a high of 16.10% in December 2023. The company's ROE was relatively stable between 13-14% for most of 2020 and 2021 before experiencing some declines in 2022.

The decreasing trend in ROE from around 14% in March 2022 to around 12% in December 2024 may indicate that the company is facing challenges in generating profit relative to its shareholders' equity. This could be a concern for investors as it signifies a lower return on the capital invested in the company.

It's important to further investigate the reasons behind the fluctuations in ROE to determine the factors impacting the company's profitability and efficiency in utilizing its equity. A declining ROE could be a result of decreasing net income, increasing shareholder equity, or a combination of both.

Overall, while American States Water Company has experienced some variability in its ROE, further analysis is needed to understand the underlying causes and implications for the company's financial performance and shareholder value.