California Water Service Group (CWT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.30% | 45.67% | 46.60% | 50.90% | 50.95% | 59.71% | 60.80% | 61.33% | 62.55% | 61.43% | 61.53% | 61.48% | 61.18% | 61.68% | 63.83% | 62.61% | 61.63% | 61.18% | 57.95% | 59.22% |
| Operating profit margin | 24.04% | 23.17% | 21.86% | 18.65% | 8.21% | 8.98% | 11.56% | 12.79% | 15.08% | 13.66% | 14.59% | 16.29% | 16.03% | 17.52% | 20.64% | 17.94% | 17.21% | 16.88% | 10.91% | 12.89% |
| Pretax margin | 22.26% | 22.85% | 19.96% | 16.84% | 5.61% | 5.52% | 8.29% | 9.38% | 12.01% | 10.48% | 10.91% | 13.21% | 13.28% | 14.76% | 19.33% | 16.07% | 13.70% | 13.61% | 7.09% | 9.16% |
| Net profit margin | 18.40% | 19.56% | 17.78% | 15.42% | 6.52% | 5.28% | 7.91% | 9.02% | 11.34% | 9.76% | 10.69% | 12.89% | 12.79% | 14.02% | 17.22% | 13.98% | 12.19% | 11.85% | 5.45% | 7.07% |
The profitability ratios of California Water Service Group, based on the provided data, show fluctuations over the quarters.
1. Gross Profit Margin:
The gross profit margin, which indicates the percentage of revenue retained after deducting the cost of goods sold, demonstrated a general trend of stability between March 2020 and June 2022, with values ranging from 57.95% to 63.83%. However, there was a significant decline in the margin from March 2023 to December 2024, falling to as low as 45.67% in September 2024 before recovering slightly to 60.30% in December 2024.
2. Operating Profit Margin:
The operating profit margin, reflecting the proportion of revenue left after deducting operating expenses, displayed fluctuations throughout the quarters. There was an initial increase from March 2020 to June 2021, reaching a peak of 20.64%. Subsequently, the margin showed a downward trend, with values declining to 8.21% in December 2023. However, there was a notable recovery in the margin in the last quarter of 2024, rising to 24.04%.
3. Pretax Margin:
The pretax margin, illustrating the percentage of revenue remaining after deducting all expenses except taxes, exhibited variability over the quarters. The margin increased steadily from March 2020 to June 2021, peaking at 19.33%. However, the margin declined sharply thereafter, dropping to 5.52% in September 2023 before recovering to 22.26% in December 2024.
4. Net Profit Margin:
The net profit margin, indicating the percentage of revenue remaining as net income after all expenses, showed fluctuations similar to the pretax margin. There was a general upward trend from March 2020 to June 2021, with the margin peaking at 17.22%. Subsequently, the margin declined, reaching a low of 5.28% in September 2023 before rebounding to 18.40% in December 2024.
In conclusion, California Water Service Group's profitability ratios have experienced fluctuations over the quarters, with varying levels of performance in terms of gross profit margin, operating profit margin, pretax margin, and net profit margin. These fluctuations may indicate changing cost structures, revenue trends, or efficiency levels within the company.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.81% | 4.75% | 4.42% | 3.65% | 1.39% | 1.73% | 2.30% | 2.65% | 3.32% | 2.94% | 3.20% | 3.65% | 3.50% | 3.84% | 4.97% | 4.22% | 4.03% | 3.76% | 2.31% | 2.84% |
| Return on assets (ROA) | 3.68% | 4.01% | 3.59% | 3.01% | 1.10% | 1.02% | 1.57% | 1.87% | 2.49% | 2.10% | 2.35% | 2.89% | 2.79% | 3.07% | 4.14% | 3.29% | 2.85% | 2.64% | 1.15% | 1.56% |
| Return on total capital | 17.15% | 16.97% | 15.34% | 13.41% | 6.02% | 6.07% | 7.77% | 9.20% | 11.03% | 10.26% | 10.88% | 12.47% | 11.82% | 13.63% | 19.68% | 17.33% | 15.20% | 15.39% | 10.23% | 13.03% |
| Return on equity (ROE) | 11.65% | 12.36% | 11.33% | 9.82% | 3.63% | 2.92% | 4.51% | 5.59% | 7.29% | 6.28% | 7.19% | 9.04% | 8.59% | 10.14% | 14.75% | 12.27% | 10.51% | 10.41% | 4.95% | 6.68% |
Based on the provided data, let's analyze the profitability ratios of California Water Service Group over the period.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA varied between 1.39% to 4.97% over the period.
- The highest Operating ROA was observed in June 2021 at 4.97%, indicating efficient utilization of assets to generate operating earnings.
- There is some fluctuation in profitability over time, with a general trend of improvement from 2020 to mid-2021, followed by a slight decline.
2. Return on Assets (ROA):
- ROA ranged from 1.02% to 4.14% during the period.
- The highest ROA was recorded in June 2021 at 4.14%, signifying the company's ability to generate earnings relative to its total assets.
- Like Operating ROA, there are fluctuations in ROA values, with a peak in mid-2021 followed by a slight dip towards the end of the period.
3. Return on Total Capital:
- The Return on Total Capital varied between 6.02% and 19.68%.
- The highest Return on Total Capital was in June 2021, indicating the return generated on the company's total capital investments.
- The ratio shows some fluctuations, with peaks in mid-2021 and late 2024, reflecting changes in the company's capital efficiency.
4. Return on Equity (ROE):
- ROE fluctuated from 2.92% to 14.75% over the period.
- The highest ROE was achieved in June 2021, indicating the return generated on shareholder equity.
- The trend in ROE is similar to that of ROA, with fluctuations and peaks in mid-2021, followed by a slight decrease towards the end of the period.
In conclusion, California Water Service Group's profitability ratios demonstrate fluctuations over the period, with certain peaks indicating periods of higher efficiency in asset utilization and return generation. The company should focus on sustaining and improving these ratios to ensure continued profitability and value creation for shareholders.