H2O America (HTO)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.73% | 56.79% | 56.80% | 56.70% | 57.61% | 57.90% | 57.94% | 59.19% | 58.67% | 58.41% | 57.54% | 55.95% | 55.64% | 55.71% | 55.53% | 55.01% | 55.67% | 56.00% | 56.08% | 55.89% |
| Operating profit margin | 23.05% | 23.28% | 22.78% | 22.62% | 23.03% | 22.30% | 22.29% | 24.36% | 22.50% | 22.02% | 21.10% | 19.06% | 18.70% | 19.66% | 19.38% | 18.22% | 19.68% | 20.46% | 20.84% | 17.92% |
| Pretax margin | 14.45% | 14.22% | 13.75% | 13.81% | 14.24% | 13.52% | 13.57% | 16.18% | 14.49% | 14.22% | 13.26% | 11.07% | 10.65% | 12.33% | 12.00% | 10.54% | 12.12% | 12.20% | 12.38% | 9.31% |
| Net profit margin | 13.03% | 12.89% | 12.56% | 12.47% | 12.48% | 12.48% | 12.68% | 14.85% | 13.77% | 12.84% | 11.85% | 9.84% | 8.97% | 10.56% | 10.54% | 9.81% | 11.08% | 10.97% | 10.91% | 7.72% |
The profitability ratios of H2O America from September 2020 through June 2025 reveal a consistent trend of stability with gradual improvements over the analyzed period. The gross profit margin demonstrates a steady upward trajectory, beginning at 55.89% in September 2020 and reaching a peak of approximately 59.19% by September 2023 before a slight decline to 56.73% in June 2025. This indicates the company's increasing ability to maintain or improve profit on sales after deducting the cost of goods sold, reflecting favorable cost management or pricing strategies.
Operating profit margins mirror this positive trend, starting from 17.92% in September 2020 and generally increasing to a peak of around 24.36% in September 2023, suggesting enhanced operational efficiencies or income from core business activities. Post-September 2023, the operating margin stabilizes slightly, fluctuating around the low 23% range, indicating sustained operational performance with marginal variations.
Pre-tax margins follow a pattern aligned with gross and operating margins, rising from 9.31% in September 2020 to a peak of 16.18% in September 2023, which indicates improved tax efficiencies or higher pre-tax earnings. Subsequently, pre-tax margin levels off, with slight fluctuations around 13.5% to 14.2%, pointing to maintained profitability before taxes.
Net profit margins display an upward trend from 7.72% in September 2020 to a high of approximately 14.85% in September 2023, reflecting an overall improvement in bottom-line profitability after all expenses, taxes, and interest are deducted. These margins stabilize in the range of 12.4% to 13% toward mid-2025, suggesting sustained profitability and effective control over expenses relative to revenue.
Overall, H2O America's profitability ratios indicate a positive and improving margin profile over the analyzed period, characterized by enhanced gross and operating profits, supported by steady pre-tax and net profit margins. Such trends suggest effective management of costs and operational efficiencies, contributing to strengthened profitability over time.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.75% | 3.77% | 3.66% | 3.59% | 3.64% | 3.48% | 3.44% | 4.25% | 3.89% | 3.82% | 3.49% | 3.11% | 3.06% | 3.27% | 3.18% | 2.99% | 3.28% | 3.46% | 3.55% | 3.05% |
| Return on assets (ROA) | 2.12% | 2.09% | 2.02% | 1.98% | 1.97% | 1.95% | 1.96% | 2.59% | 2.38% | 2.23% | 1.96% | 1.61% | 1.47% | 1.75% | 1.73% | 1.61% | 1.85% | 1.86% | 1.86% | 1.31% |
| Return on total capital | 12.68% | 12.96% | 12.75% | 12.77% | 13.32% | 12.92% | 12.74% | 14.20% | 13.13% | 13.04% | 12.64% | 11.54% | 11.39% | 12.34% | 11.94% | 11.56% | 12.51% | 12.59% | 13.54% | 11.39% |
| Return on equity (ROE) | 7.01% | 7.07% | 6.87% | 6.75% | 6.87% | 6.87% | 6.89% | 8.16% | 7.47% | 7.06% | 6.62% | 5.52% | 5.05% | 5.99% | 5.85% | 5.58% | 6.36% | 6.32% | 6.72% | 4.69% |
H2O America's profitability ratios over the period from September 2020 to June 2025 reflect a generally stable and modestly improving profitability profile, with some fluctuations observed.
Operating Return on Assets (Operating ROA): This ratio indicates the efficiency of the company's core operations before considering the impact of financing and taxes. The data shows a gradual upward trend from 3.05% in September 2020 to a peak of 4.25% in September 2023. Although slight declines are noticeable, particularly at the end of 2024 (3.44%), the ratio maintains a consistent incremental increase, suggesting improvements in operational efficiency or revenue generation. The recent figures indicate a stabilization around 3.59-3.66%.
Return on Assets (ROA): This broader profitability measure, reflecting net income relative to total assets, remains modest but shows a consistent upward trajectory from 1.31% in September 2020 to approximately 2.12% by June 2025. The trend indicates a gradual enhancement in overall asset utilization effectiveness, with peaks around 2.59% in September 2023 before settling slightly lower.
Return on Total Capital: This ratio, which considers both debt and equity financing, exhibits volatility but an overall positive trend. From 11.39% in September 2020, it rose to a high of 14.20% in September 2023, reflecting improved efficiency in generating returns from the company's total capital base. Although it experienced some declines afterward, it remains broadly stable around 12.7-13.3%, suggesting effective capital deployment and sustained profitability.
Return on Equity (ROE): This metric reveals the profitability attributable to shareholders’ equity. The data indicates a low baseline of 4.69% in September 2020, followed by a steady upward trend to 8.16% in September 2023. Recently, the ROE has hovered around 6.87-7.07%, reflecting moderate but consistent profitability from shareholders' standpoint. The fluctuations may be influenced by changes in net income, capital structure, or stockholder equity, but the overall trend points to stability and slight improvement.
Summary:
Overall, H2O America's profitability ratios suggest a company experiencing steady operational and net profitability improvements over the observed period. The ratios indicate a stable asset utilization and return generation, with incremental gains impacting the core operational efficiency, total capital profitability, and shareholder returns. While the ratios remain relatively modest, their positive trends imply effective management of operational processes and capital deployment, with no significant deterioration observed in recent periods.