California Water Service Group (CWT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 225,054 | 77,135 | 127,660 | 126,170 | 136,666 |
| Total assets | US$ in thousands | 5,180,280 | 4,595,530 | 3,850,750 | 3,623,270 | 3,394,250 |
| Operating ROA | 4.34% | 1.68% | 3.32% | 3.48% | 4.03% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $225,054K ÷ $5,180,280K
= 4.34%
Operating Return on Assets (Operating ROA) is a key financial ratio that provides insights into the efficiency and profitability of California Water Service Group. The trend analysis of Operating ROA from December 31, 2020, to December 31, 2024, reveals fluctuating results.
The Operating ROA decreased from 4.03% in 2020 to 3.48% in 2021, signaling a decline in the company's ability to generate operating profits from its assets. This downward trend continued as the Operating ROA further dropped to 3.32% in 2022 and then significantly declined to 1.68% in 2023, indicating possible operational challenges or inefficiencies.
However, there was a notable recovery in 2024, with the Operating ROA increasing to 4.34%, suggesting an improvement in the company's operational performance and profitability compared to the previous year.
Overall, the fluctuating trend in Operating ROA highlights the importance of closely monitoring the company's asset utilization and operational efficiency to sustain or improve profitability in the future.
Peer comparison
Dec 31, 2024