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.