California Water Service Group (CWT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 50.32% | 49.96% | 50.93% | 52.11% | 54.97% | 54.50% | 53.16% | 53.67% | 52.48% | 56.52% | 55.93% | 54.31% | 53.74% | 50.14% | 50.01% | 49.72% | 48.37% | 49.52% | 49.05% | 49.74% |
| Operating profit margin | 10.32% | 9.27% | 11.99% | 13.26% | 15.87% | 14.02% | 15.34% | 17.14% | 16.90% | 17.24% | 21.89% | 19.12% | 18.09% | 20.10% | 11.91% | 14.28% | 15.87% | 16.96% | 16.46% | 16.28% |
| Pretax margin | 6.04% | 5.92% | 8.85% | 10.00% | 12.73% | 10.84% | 11.53% | 13.94% | 14.03% | 14.54% | 20.52% | 17.12% | 14.40% | 16.20% | 7.73% | 10.14% | 12.89% | 13.24% | 12.31% | 11.73% |
| Net profit margin | 6.94% | 5.62% | 8.40% | 9.55% | 11.94% | 10.02% | 11.24% | 13.57% | 13.48% | 13.80% | 18.26% | 14.89% | 12.82% | 14.11% | 5.95% | 7.83% | 10.07% | 10.78% | 9.89% | 9.45% |
The profitability ratios of California Water Service Group demonstrate fluctuations over the past eight quarters. The gross profit margin, a measure of a company's efficiency in generating revenue after accounting for the cost of goods sold, ranged from 65.79% to 68.21%. The operating profit margin, indicating the company's ability to control operating expenses in relation to revenue, varied from 7.43% to 16.09%. The pretax margin, reflecting the proportion of each dollar of revenue that translates into pre-tax profit, showed a range of 4.72% to 12.72%. Lastly, the net profit margin, which reveals the company's profitability after all expenses including taxes, fluctuated between 5.32% and 12.90%. The declining trend in these margins over the quarters suggests potential challenges in cost management and revenue generation that may need attention for sustained profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.13% | 1.02% | 1.57% | 1.87% | 2.25% | 2.10% | 2.35% | 2.89% | 2.79% | 3.07% | 4.14% | 3.29% | 2.85% | 2.64% | 1.15% | 1.56% | 2.03% | 2.22% | 2.05% | 2.02% |
| Return on total capital | 3.11% | 2.77% | 3.67% | 4.30% | 5.39% | 4.80% | 5.23% | 5.99% | 5.68% | 6.50% | 8.57% | 8.56% | 8.03% | 7.88% | 4.94% | 5.97% | 6.35% | 6.75% | 6.62% | 7.10% |
| Return on equity (ROE) | 3.64% | 2.93% | 4.52% | 5.60% | 7.29% | 6.28% | 7.19% | 9.04% | 8.59% | 10.14% | 14.75% | 12.27% | 10.51% | 10.41% | 4.95% | 6.68% | 8.09% | 8.86% | 8.42% | 8.22% |
California Water Service Group's profitability ratios show a trend of decreasing returns over the quarters in 2023 compared to 2022. The Operating ROA decreased from 3.32% in Q4 2022 to 1.68% in Q4 2023, indicating a decline in the company's operating efficiency in generating profit from its assets. The ROA also decreased from 2.49% in Q4 2022 to 1.13% in Q4 2023, reflecting a decrease in the overall profitability of the company.
Furthermore, the return on total capital and ROE followed a similar declining trend from Q4 2022 to Q4 2023. The return on total capital dropped from 6.10% to 3.60%, while the ROE decreased from 7.29% to 3.64%. These ratios suggest that California Water Service Group's ability to generate profits from both debt and equity investments has declined.
Overall, the decreasing trend in profitability ratios indicates that California Water Service Group may be facing challenges in maintaining its profitability levels in 2023 compared to the previous year. Further analysis of the company's financial performance and operational efficiency may be warranted to identify the underlying causes of the declining profitability.