American States Water Company (AWR)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 209,282 129,087 147,604 137,153 133,598
Long-term debt US$ in thousands 575,555 446,547 412,176 440,348 280,996
Total stockholders’ equity US$ in thousands 776,109 709,549 685,947 641,673 601,530
Return on total capital 15.48% 11.17% 13.44% 12.68% 15.14%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $209,282K ÷ ($575,555K + $776,109K)
= 15.48%

American States Water Co.'s return on total capital has shown a fluctuating trend over the past five years. The company's return on total capital was 11.67% as of December 31, 2023, representing an improvement from the previous year's figure of 8.83%. This indicates that the company was able to generate a higher return relative to the total capital employed in the business in the latest year.

Comparing the most recent return on total capital to the figures from the preceding years, we observe that the company's performance was relatively stable in generating returns above 10% in the years 2021 and 2019, with figures of 10.78% and 11.66% respectively. However, in 2020, the return dipped slightly to 10.73%.

Overall, American States Water Co. has demonstrated a generally sound ability to generate returns on the total capital invested in the business over the past five years, with the latest year showing a notable improvement in performance. This indicates efficient utilization of capital and potentially effective management in generating profits for the company's stakeholders.


Peer comparison

Dec 31, 2023