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American Water Works AWK Return on invested capital

Return on invested capital at other companies

CMS
CMS EnergyCMS
5.1%-0.5pp
Eversource Energy logo
Eversource EnergyES
7.1%+1.1pp
EVR
EvergyEVRG
6.7%0.0pp
Atmos Energy logo
Atmos EnergyATO
6.1%+0.1pp
WEC Energy Group logo
WEC Energy GroupWEC
6.4%-0.3pp
Entergy logo
EntergyETR
6.5%+0.9pp

Other financials

Income statement

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Revenue$1.2B+5.7%
Operating income$391.0M+5.4%
Net income$196.0M-4.4%
EPS (diluted)$1.00-4.8%

Balance sheet

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Cash & equivalents$171.0M+8.9%
Total debt$14.2B-1.3%
Total equity$11.0B+4.8%
Total assets$35.3B+6.4%

Cash flow

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Operating cash flow$305.0M-7.9%
CapEx$659.0M+20.3%
Free cash flow-$354.0M-63.1%

Valuation

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Market cap$24.49B-7.6%
Enterprise value$38.52B-5.6%
P/E22.2×-2.5×
P/S4.7×-0.8×

Profitability

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Operating margin36.5%-0.1pp
Net margin21.2%-1.1pp

Returns & leverage

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Return on equity10.2%-0.2pp
Debt / equity1.3×-0.1×
Current ratio0.4×-0.1×

Where this comes from

Calculated from American Water Works’s reported figures.

Based on trailing twelve months.

The official record: American Water Works’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is American Water Works's return on invested capital?
American Water Works (AWK) reported return on invested capital of 6% in Q1 2026.
How has American Water Works's return on invested capital changed year-over-year?
American Water Works's return on invested capital increased by 2.3% year-over-year, from 5.8% to 6%.
What is the long-term trend for American Water Works's return on invested capital?
Over 4 years (2021 to 2025), American Water Works's return on invested capital has grown at a 0.9% compound annual growth rate (CAGR), from 23% to 23.8%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.