American States Water Company (AWR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 184,483 | 209,282 | 129,087 | 147,604 | 137,153 |
| Long-term debt | US$ in thousands | 640,382 | 575,555 | 446,547 | 412,176 | 440,348 |
| Total stockholders’ equity | US$ in thousands | 920,051 | 776,109 | 709,549 | 685,947 | 641,673 |
| Return on total capital | 11.82% | 15.48% | 11.17% | 13.44% | 12.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $184,483K ÷ ($640,382K + $920,051K)
= 11.82%
Based on the provided data, American States Water Company's return on total capital has shown some fluctuations over the years. The return on total capital was 12.68% as of December 31, 2020, increasing to 13.44% by December 31, 2021. However, there was a slight decline in the return to 11.17% by December 31, 2022.
It then saw a significant increase to 15.48% by December 31, 2023, indicating improved efficiency in generating returns from the total capital employed. However, the return decreased again to 11.82% by December 31, 2024.
Overall, American States Water Company's return on total capital has shown variability, with periods of both growth and decline. It is essential for the company to assess the factors influencing these fluctuations to ensure sustained and optimal utilization of its total capital.
Peer comparison
Dec 31, 2024