H2O America (HTO)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	4,658,310	4,345,070	3,755,060	3,492,400	3,311,460
Operating ROA		3.66%	3.44%	3.49%	3.18%	3.55%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $170,503K ÷ $4,658,310K
= 3.66%

The operating return on assets (ROA) for H2O America over the specified period demonstrates a relatively stable performance, with slight fluctuations across the years from December 31, 2020, to December 31, 2024. In 2020, the operating ROA was 3.55%, indicating the company's efficiency in generating operating income relative to its total assets at that time. By the end of 2021, this ratio declined to 3.18%, suggesting a reduction in operating profitability or efficiency, potentially due to increased operational expenses, competitive pressures, or other external factors impacting asset utilization.

Subsequently, the operating ROA recovered somewhat in 2022 to 3.49%, reflecting an improvement in operating performance or better asset management. The ratio slightly decreased again to 3.44% in 2023, indicating a marginal decline in operating efficiency or profitability. However, by 2024, the operating ROA increased to 3.66%, surpassing the previous year's figure and marking the highest level within the analyzed period.

Overall, the trend signifies that H2O America has maintained a relatively consistent level of operating profitability relative to its assets, with minor fluctuations indicative of operational adjustments or external influences. The slight upward movement in 2024 may suggest a modest improvement in operational efficiency or profit margins. This stability in operating ROA reflects the company's capacity to generate operating income from its assets consistently over the reviewed timeframe.