H2O America (HTO)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 102,798 98,819 93,967 89,996 87,566 85,156 84,987 99,537 88,349 81,373 73,580 57,967 52,001 61,573 60,490 55,888 62,989 61,828 61,591 42,821
Total stockholders’ equity US$ in thousands 1,465,970 1,397,340 1,366,970 1,333,800 1,274,610 1,240,250 1,233,400 1,220,250 1,182,720 1,152,480 1,110,870 1,049,350 1,029,840 1,028,420 1,034,520 1,000,710 989,679 978,296 917,160 913,061
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%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $102,798K ÷ $1,465,970K
= 7.01%

The analysis of H2O America's return on equity (ROE) over the analyzed period indicates a pattern of moderate fluctuations with an overall trend of gradual improvement. Starting from a low of 4.69% as of September 30, 2020, the ROE exhibited a sustained upward trajectory, reaching a peak of approximately 8.16% on September 30, 2023. This reflects an enhancement in the company's ability to generate profits relative to shareholders' equity during this period.

Between September 2020 and September 2023, the ROE demonstrated incremental growth, with notable increases observed particularly after December 2022. The data shows that from the lowest point in September 2022 at 5.52%, the ROE rose steadily to 6.62% by December 2022, further climbing to 7.06% in March 2023, and reaching 8.16% by September 2023. This upward movement may indicate improvements in profitability, perhaps due to higher net income margins, enhanced operational efficiency, or favorable market conditions.

In the subsequent period up to June 2024, the ROE stabilized around 6.87%, suggesting a period of relative consistency but not without slight fluctuations. The value slightly decreased from the peak in September 2023, settling at approximately 6.75% in September 2024. This stabilization might reflect a balance between profit generation and changes in shareholders' equity or capital structure during this timeframe.

Looking forward, projections for the first half of 2025 show a marginal increase in ROE, reaching around 7.07%, indicating an optimistic outlook on the company's ability to sustain or improve its profitability relative to equity.

Overall, the historical ROE data suggests that H2O America has experienced a positive trend of increasing profitability on shareholder equity over the analyzed period, with periods of stabilization. The growth in ROE reflects potential improvements in operational performance, strategic execution, or market conditions, although the recent stabilization indicates a possible plateau in growth. Continued monitoring of profit margins, leverage, and efficiency ratios would be essential to assess future prospects for ROE improvement.