American States Water Company (AWR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	209,282	200,944	189,486	159,498	129,087	130,549	132,788	140,393	147,604	147,273	145,425	144,570	137,153	131,506	133,460	135,142	133,598	130,496	122,645	108,531
Long-term debt	US$ in thousands	575,555	575,459	576,376	576,431	446,547	446,817	446,940	412,150	412,176	412,093	412,345	440,326	440,348	440,343	280,886	280,971	280,996	281,001	281,014	281,070
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
Return on total capital		15.48%	14.92%	14.23%	12.20%	11.17%	11.33%	11.64%	12.77%	13.44%	13.50%	13.51%	13.27%	12.68%	12.24%	14.83%	15.26%	15.14%	14.88%	14.26%	12.88%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 relatively stable performance over the past eight quarters. The company's return on total capital ranged from 8.83% to 11.69% during this period.

The highest return on total capital was recorded in Q3 2023 at 11.69%, indicating an efficient use of the company's capital to generate profits. This was closely followed by Q4 2023 at 11.67%.

On the other hand, the lowest return on total capital was in Q4 2022 at 8.83%, which suggests a lower efficiency in utilizing the company's total capital to generate returns.

Overall, American States Water Co. has maintained a healthy return on total capital above 10% for most quarters, indicating effective capital utilization and a sound financial performance. However, there may be opportunities to further enhance efficiency in capital allocation to drive higher returns in the future.