American States Water Company (AWR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	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	601,530	595,947	578,787	561,500
ROE		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%	14.02%	13.66%	13.20%	11.74%

December 31, 2023 calculation

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

American States Water Co.'s return on equity (ROE) has shown a generally positive trend over the past eight quarters. The company's ROE has been steadily increasing from 11.02% in Q4 2022 to 16.05% in Q4 2023. This indicates that the company has been more efficient in generating profit from shareholders' equity over this period.

The ROE peaked at 16.05% in Q4 2023, which suggests that the company has been effectively utilizing its shareholders' equity to generate profit. This improvement in ROE may reflect a combination of efficient asset management, effective cost control, and higher net profits.

Overall, the increasing trend in ROE demonstrates that American States Water Co. has been successful in delivering higher returns to its shareholders relative to the equity invested in the company. It indicates that the company is effectively leveraging its equity capital to generate profit and create value for its shareholders.