California Water Service Group (CWT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 77,135 | 68,186 | 89,658 | 100,998 | 127,660 | 111,826 | 118,032 | 132,989 | 126,770 | 141,351 | 176,261 | 146,508 | 136,666 | 131,988 | 77,493 | 92,013 | 99,412 | 105,592 | 101,354 | 101,180 |
| Total assets | US$ in thousands | 4,595,530 | 4,041,360 | 3,990,200 | 3,886,860 | 4,264,810 | 3,806,400 | 3,682,750 | 3,639,240 | 3,623,270 | 3,679,690 | 3,548,750 | 3,471,470 | 3,394,250 | 3,506,430 | 3,359,930 | 3,240,840 | 3,111,310 | 3,023,250 | 2,964,600 | 2,900,660 |
| Operating ROA | 1.68% | 1.69% | 2.25% | 2.60% | 2.99% | 2.94% | 3.20% | 3.65% | 3.50% | 3.84% | 4.97% | 4.22% | 4.03% | 3.76% | 2.31% | 2.84% | 3.20% | 3.49% | 3.42% | 3.49% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $77,135K ÷ $4,595,530K
= 1.68%
The operating return on assets (ROA) of California Water Service Group has shown a declining trend over the quarters analyzed. The Q4 2023 operating ROA of 1.68% is lower than the previous quarter's 1.43%, indicating a decrease in the company's ability to generate operating income from its assets. Compared to the same quarter in the previous year, the Q4 2023 operating ROA of 1.68% is significantly lower than the 3.32% reported, demonstrating a notable reduction in operational efficiency over the year.
The average operating ROA for the year 2023 stands at 1.91%, which is lower than the average for 2022 at 3.28%. This suggests a general decline in the company's ability to generate operating income from its assets during the year 2023 compared to the previous year.
Overall, the decreasing trend in operating ROA indicates that California Water Service Group has been less effective in generating operating income relative to its assets in recent quarters, which may raise concerns about the company's operational performance and efficiency. Potential factors influencing this trend could include changes in operational costs, revenue generation, asset utilization, or management effectiveness. Further analysis and investigation may be necessary to pinpoint the underlying reasons for this decline and address any potential inefficiencies within the company.
Peer comparison
Dec 31, 2023