California Water Service Group (CWT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 77,135 | 127,660 | 126,770 | 136,666 | 99,412 |
| Total assets | US$ in thousands | 4,595,530 | 4,264,810 | 3,623,270 | 3,394,250 | 3,111,310 |
| Operating ROA | 1.68% | 2.99% | 3.50% | 4.03% | 3.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $77,135K ÷ $4,595,530K
= 1.68%
The operating return on assets (Operating ROA) for California Water Service Group has shown a decreasing trend over the past five years, starting at 3.27% in 2019 and declining to 1.68% in 2023. This downward trend indicates that the company's operating income generated from its assets has been decreasing over time.
In 2023, the Operating ROA of 1.68% suggests that for every dollar of assets employed by the company in its operations, it generated 1.68 cents in operating income. This indicates a relatively low efficiency in utilizing its assets to generate operating profits compared to the previous years.
The declining trend in Operating ROA could be concerning as it may indicate inefficiencies in the company's operations, reduced profitability, or challenges in managing its assets effectively to generate returns. It would be essential for California Water Service Group to assess its operational performance, optimize asset utilization, and implement strategies to improve its Operating ROA to enhance profitability and shareholder value in the future.
Peer comparison
Dec 31, 2023