Essential Utilities Inc (WTRG)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 595,314 498,226 465,237 431,612 284,849
Total assets US$ in thousands 18,026,600 16,841,500 15,719,100 14,658,300 13,705,300
ROA 3.30% 2.96% 2.96% 2.94% 2.08%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $595,314K ÷ $18,026,600K
= 3.30%

Essential Utilities Inc's return on assets (ROA) has shown a positive trend over the years, increasing from 2.08% in December 31, 2020, to 3.30% in December 31, 2024. This indicates that the company is becoming more efficient in generating profits from its assets. The steady improvement in ROA reflects effective management of the company's assets to generate earnings. Investors and stakeholders can view this as a positive sign of the company's financial health and operational efficiency.