California Water Service Group (CWT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.32% | 54.97% | 52.43% | 53.74% | 48.32% |
| Operating profit margin | 10.32% | 15.87% | 16.92% | 18.09% | 15.87% |
| Pretax margin | 6.04% | 12.73% | 14.04% | 14.41% | 12.90% |
| Net profit margin | 6.94% | 11.94% | 13.50% | 12.82% | 10.07% |
California Water Service Group's profitability ratios have been generally stable over the past five years. The gross profit margin has fluctuated slightly between 65.88% and 68.21%, with a slight decrease to 66.09% in 2023. This indicates that the company is efficiently managing its production costs.
The operating profit margin has shown more variability, ranging from 14.25% to 16.03%. In 2023, it decreased to 9.71%, which may suggest a decrease in operating efficiency or an increase in operating expenses relative to revenue.
The pretax margin also experienced fluctuations over the years, with a decrease to 6.47% in 2023 from a high of 12.77% in 2021. This indicates that the company's profitability before taxes has decreased, possibly due to higher expenses or lower revenue in the most recent year.
The net profit margin reflects the company's bottom-line profitability, accounting for all expenses including taxes. While there have been fluctuations, with a notable increase to 12.79% in 2021, the net profit margin has generally been maintained within a range, except for the significant rise from 8.83% to 11.34% between 2019 and 2020.
Overall, California Water Service Group has shown stability in its profitability ratios, although there were some declines in 2023 compared to previous years. It may be important for the company to closely monitor and manage its operating expenses to sustain or improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.68% | 2.99% | 3.50% | 4.03% | 3.20% |
| Return on assets (ROA) | 1.13% | 2.25% | 2.79% | 2.85% | 2.03% |
| Return on total capital | 3.11% | 5.39% | 5.68% | 8.03% | 6.35% |
| Return on equity (ROE) | 3.64% | 7.29% | 8.59% | 10.51% | 8.09% |
California Water Service Group's profitability ratios show a mixed performance over the last five years.
1. Operating return on assets (Operating ROA) has decreased from 3.32% in 2022 to 1.68% in 2023, indicating a decline in the company's ability to generate operating profits from its total assets.
2. Return on assets (ROA) has also shown a downward trend, falling from 2.49% in 2022 to 1.13% in 2023, suggesting a decrease in the company's overall profitability relative to its total assets.
3. Return on total capital has decreased from 6.10% in 2022 to 3.60% in 2023, indicating a decline in the company's ability to generate returns on its total invested capital.
4. Return on equity (ROE) has also decreased from 7.29% in 2022 to 3.64% in 2023, highlighting a decrease in the company's profitability in terms of equity investment.
Overall, the decline in profitability ratios for California Water Service Group suggests challenges in generating returns on assets, capital, and equity, which may require further analysis to identify the underlying reasons and potential strategies for improvement.