H2O America (HTO)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	170,503	149,435	130,978	111,159	117,670
Revenue	US$ in thousands	748,439	670,363	620,698	573,686	564,526
Operating profit margin		22.78%	22.29%	21.10%	19.38%	20.84%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $170,503K ÷ $748,439K
= 22.78%

The operating profit margin of H2O America demonstrates a generally upward trend over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin was 20.84%, reflecting the company's profitability relative to its operating revenues within that year. This margin slightly decreased to 19.38% by the end of 2021, indicating a marginal reduction in operational efficiency or increased operating expenses relative to revenue.

Subsequently, the margin improved in 2022 to 21.10%, surpassing the 2020 level, which suggests enhanced operational performance or effective cost management during that period. The positive trend continued into 2023 with the operating profit margin reaching 22.29%, signifying further improvement in profitability efficiency. The most recent data for 2024 indicates a continued increase to 22.78%, the highest figure observed within this period.

Overall, the data indicates that H2O America's operating profit margin has experienced growth over the four-year span, with some fluctuations. The consistent upward movement in the latter years suggests effective operational management and an increasing capacity to generate profit from its core operations relative to revenue, reflecting a strengthening profitability position over this timeframe.