Essential Utilities Inc (WTRG)
Profitability ratios
Return on sales
| 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 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 49.92% | 45.47% | 44.79% | 49.57% | 50.53% | 48.89% | 47.68% | 46.46% | 46.87% | 49.01% | 49.08% | 49.65% | 52.57% | 53.51% | 53.83% | 53.53% | 52.53% | 56.40% | 58.66% | 60.47% |
| Operating profit margin | 36.32% | 35.95% | 35.48% | 35.95% | 33.70% | 30.18% | 29.37% | 28.47% | 28.90% | 29.78% | 29.64% | 29.99% | 32.09% | 32.81% | 33.26% | 33.15% | 29.72% | 31.87% | 35.00% | 36.67% |
| Pretax margin | 27.49% | 26.63% | 26.50% | 27.18% | 21.02% | 18.95% | 18.63% | 18.51% | 19.71% | 20.89% | 20.60% | 20.85% | 22.47% | 22.62% | 23.20% | 22.83% | 18.12% | 19.97% | 24.31% | 26.21% |
| Net profit margin | 28.54% | 27.84% | 28.74% | 29.52% | 24.26% | 20.95% | 20.24% | 19.75% | 20.33% | 22.04% | 21.93% | 22.43% | 22.98% | 23.00% | 23.46% | 23.27% | 19.47% | 20.28% | 25.15% | 27.47% |
Essential Utilities Inc's profitability ratios have shown fluctuating trends over the past few years. The gross profit margin has gradually decreased from 60.47% in March 2020 to 49.92% in December 2024. This indicates a decline in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a downward trend, decreasing from 36.67% in March 2020 to 36.32% in December 2024. This suggests a reduction in the company's profitability from its core operations over the years.
The pretax margin also reflects a declining pattern, dropping from 26.21% in March 2020 to 27.49% in December 2024. This implies that the company's profitability before tax has been under pressure, impacting its overall financial performance.
On the other hand, the net profit margin has been more volatile, initially decreasing from 27.47% in March 2020 to 19.75% in June 2023, before rebounding to 28.54% in December 2024. This indicates fluctuations in the company's ability to convert revenues into profits after accounting for all expenses.
Overall, Essential Utilities Inc's profitability ratios have shown mixed performance, with declining trends in gross profit margin, operating profit margin, and pretax margin, but a more erratic behavior in the net profit margin. Further analysis would be needed to understand the specific factors driving these changes and their implications for the company's financial health.
Return on investment
| 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 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.20% | 4.01% | 3.98% | 4.09% | 4.11% | 4.19% | 4.20% | 4.17% | 4.21% | 4.13% | 4.03% | 4.02% | 4.11% | 4.19% | 4.30% | 4.29% | 3.17% | 2.89% | 2.98% | 2.68% |
| Return on assets (ROA) | 3.30% | 3.11% | 3.23% | 3.36% | 2.96% | 2.91% | 2.90% | 2.89% | 2.96% | 3.06% | 2.98% | 3.01% | 2.94% | 2.93% | 3.04% | 3.02% | 2.08% | 1.84% | 2.14% | 2.01% |
| Return on total capital | 12.56% | 11.66% | 11.31% | 11.55% | 11.94% | 11.82% | 12.30% | 12.24% | 12.55% | 12.12% | 11.65% | 11.67% | 11.86% | 11.73% | 12.48% | 12.38% | 9.80% | 8.87% | 8.92% | 8.30% |
| Return on equity (ROE) | 9.60% | 8.83% | 9.03% | 9.42% | 8.45% | 8.07% | 8.30% | 8.29% | 8.65% | 8.74% | 8.40% | 8.51% | 8.33% | 8.15% | 8.75% | 8.66% | 6.08% | 5.31% | 6.02% | 5.62% |
Essential Utilities Inc's profitability ratios show a positive trend over the past few years.
- The Operating Return on Assets (Operating ROA) has steadily increased from 2.68% in March 2020 to 4.20% in June 2024, indicating that the company is effectively generating operating profits relative to its total assets.
- The Return on Assets (ROA) also shows a similar increasing trend, rising from 2.01% in March 2020 to 3.30% in December 2024, indicating an improvement in the company's ability to generate profits from its total assets.
- Return on Total Capital has shown fluctuations but has generally increased from 8.30% in March 2020 to 12.56% in December 2024, signifying the company's efficiency in generating returns from its total capital.
- Return on Equity (ROE) has also displayed a positive trend, increasing from 5.62% in March 2020 to 9.60% in December 2024, suggesting that the company is rewarding its equity shareholders with improved returns.
Overall, Essential Utilities Inc's profitability ratios reflect a positive financial performance, with consistent growth in profitability metrics over the analyzed period. This indicates that the company has been effectively utilizing its assets and capital to generate profits and create value for its shareholders.