Essential Utilities Inc (WTRG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.12% | 99.05% | 100.00% | 100.00% | 100.00% |
| Operating profit margin | 33.70% | 28.90% | 32.09% | 29.72% | 38.23% |
| Pretax margin | 21.02% | 19.71% | 22.47% | 18.12% | 23.78% |
| Net profit margin | 24.26% | 20.33% | 22.98% | 19.47% | 25.24% |
Essential Utilities Inc has shown consistently strong profitability over the years, as reflected in its profitability ratios.
The gross profit margin has fluctuated slightly, with a significant decrease in 2022 compared to the previous year, followed by a notable increase in 2023. This indicates the company's ability to effectively manage its cost of goods sold.
The operating profit margin has generally improved from 2020 to 2023, suggesting that Essential Utilities Inc has been successful in controlling its operating expenses and generating operating income.
The pretax margin shows a steady increase from 2020 to 2023, indicating that the company has been able to effectively manage its non-operating expenses and generate higher income before taxes.
The net profit margin has also shown improvement over the years, with 2023 recording the highest net profit margin compared to the previous years. This indicates that the company has effectively managed its tax expenses and other deductions to generate higher net income relative to its total revenue.
Overall, Essential Utilities Inc's profitability ratios demonstrate the company's ability to generate profits efficiently and effectively manage its costs and expenses over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.11% | 4.21% | 4.11% | 3.17% | 3.63% |
| Return on assets (ROA) | 2.96% | 2.96% | 2.94% | 2.08% | 2.40% |
| Return on total capital | 5.62% | 5.86% | 5.74% | 4.45% | 4.94% |
| Return on equity (ROE) | 8.45% | 8.65% | 8.33% | 6.08% | 5.79% |
Essential Utilities Inc has shown consistent profitability performance over the past five years, as indicated by its profitability ratios.
Operating return on assets (Operating ROA) has remained relatively stable around the range of 3.15% to 4.21%, with a slight increase in 2023 to 4.11%. This ratio measures the company's ability to generate operating income from its assets.
Return on assets (ROA) has also demonstrated stability, ranging from 2.08% to 2.96% over the years. ROA reflects the company's ability to generate net income from its total assets.
Return on total capital has shown a similar trend to ROA, increasing from 4.15% in 2020 to 5.34% in 2023. This ratio evaluates the company's efficiency in generating returns from both equity and debt capital.
Return on equity (ROE) has displayed a consistent upward trend, indicating the company's improved profitability in relation to shareholders' equity. The ROE has increased from 5.79% in 2019 to 8.45% in 2023, showcasing a positive growth trajectory.
Overall, Essential Utilities Inc's profitability ratios demonstrate a stable and improving financial performance, highlighting its ability to efficiently utilize its assets and capital to generate returns for both the company and its shareholders.