Essential Utilities Inc (WTRG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 692,097 | 661,187 | 602,709 | 434,686 | 340,159 |
| Total assets | US$ in thousands | 16,841,500 | 15,719,100 | 14,658,300 | 13,705,300 | 9,361,980 |
| Operating ROA | 4.11% | 4.21% | 4.11% | 3.17% | 3.63% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $692,097K ÷ $16,841,500K
= 4.11%
Essential Utilities Inc's operating return on assets (operating ROA) has shown a relatively stable trend over the past five years, ranging from 3.15% in 2020 to 4.21% in 2022. The operating ROA decreased slightly to 4.11% in 2023, compared to the previous year. This indicates that the company is generating operating income efficiently relative to its total assets.
The consistent performance of operating ROA suggests that Essential Utilities Inc has been effectively managing its assets to generate operating income. However, it is essential to monitor any fluctuations in the ratio to understand the impact on the company's overall profitability and efficiency in utilizing its assets. Additionally, comparative analysis with industry benchmarks could provide further insights into Essential Utilities Inc's competitive position and performance in the market.
Peer comparison
Dec 31, 2023