California Water Service Group (CWT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 95.40% | 45.73% | 62.55% | 61.18% | 61.63% |
| Operating profit margin | 21.71% | 9.71% | 15.08% | 15.95% | 17.21% |
| Pretax margin | 21.87% | 5.61% | 12.01% | 13.28% | 13.70% |
| Net profit margin | 18.40% | 6.53% | 11.34% | 12.79% | 12.19% |
California Water Service Group's gross profit margin has shown some fluctuation over the past five years, starting at 61.63% in 2020, declining to 45.73% in 2023, and then sharply rising to 95.40% in 2024. This indicates potential variability in the cost of goods sold or pricing strategies during this period.
The operating profit margin has also experienced variations, with a decrease from 17.21% in 2020 to 9.71% in 2023, before rebounding to 21.71% in 2024. This suggests changes in operating expenses or inefficiencies that were later addressed.
The pretax margin followed a similar trend, declining from 13.70% in 2020 to 5.61% in 2023, and then significantly increasing to 21.87% in 2024. This may reflect changes in tax liabilities or adjustments in revenue generation strategies.
In terms of net profit margin, there was a slight increase from 12.19% in 2020 to 12.79% in 2021, followed by a decline to 6.53% in 2023, before a substantial rise to 18.40% in 2024. This suggests that overall profitability improved significantly in 2024 compared to previous years.
Overall, California Water Service Group's profitability ratios have shown some volatility in recent years, with improvements in profitability achieved in 2024 after facing challenges in 2023. It would be important to further analyze the underlying factors driving these changes to assess the company's financial performance accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.34% | 1.68% | 3.32% | 3.48% | 4.03% |
| Return on assets (ROA) | 3.68% | 1.13% | 2.49% | 2.79% | 2.85% |
| Return on total capital | 17.55% | 6.62% | 11.03% | 11.82% | 15.53% |
| Return on equity (ROE) | 11.65% | 3.64% | 7.29% | 8.59% | 10.51% |
The profitability ratios of California Water Service Group show a mix of trends over the past five years.
- Operating return on assets (Operating ROA) has fluctuated, with a decrease from 4.03% in December 2020 to 3.32% in December 2022, before experiencing a slight increase to 4.34% in December 2024.
- Return on assets (ROA) has also shown variability, starting at 2.85% in 2020, declining to 1.13% in 2023, and rebounding to 3.68% by the end of 2024.
- Return on total capital has followed a similar pattern, with a high of 15.53% in December 2020, a low of 6.62% in December 2023, and a recovery to 17.55% by the end of 2024.
- Return on equity (ROE) has shown a consistent downward trend, dropping from 10.51% in December 2020 to 3.64% in December 2023, before rising to 11.65% in December 2024.
Overall, it appears that despite some fluctuations, the company has managed to improve its profitability metrics towards the end of the period, as evidenced by the rebound in ROA, return on total capital, and ROE in 2024 after facing some challenges in the earlier years. It is worth monitoring these ratios in the future to assess the company's ongoing profitability performance.