American Gross Profit vs Other Operating Expenses Analysis

AWK Stock  USD 138.79  0.90  0.65%   
American Water financial indicator trend analysis is way more than just evaluating American Water Works prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether American Water Works is a good investment. Please check the relationship between American Water Gross Profit and its Other Operating Expenses accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.

Gross Profit vs Other Operating Expenses

Gross Profit vs Other Operating Expenses Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of American Water Works Gross Profit account and Other Operating Expenses. At this time, the significance of the direction appears to have almost identical trend.
The correlation between American Water's Gross Profit and Other Operating Expenses is 0.98. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Other Operating Expenses in the same time period over historical financial statements of American Water Works, assuming nothing else is changed. The correlation between historical values of American Water's Gross Profit and Other Operating Expenses is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Gross Profit of American Water Works are associated (or correlated) with its Other Operating Expenses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Other Operating Expenses has no effect on the direction of Gross Profit i.e., American Water's Gross Profit and Other Operating Expenses go up and down completely randomly.

Correlation Coefficient

0.98
Relationship DirectionPositive 
Relationship StrengthVery Strong

Gross Profit

Gross profit is a required income statement account that reflects total revenue of American Water Works minus its cost of goods sold. It is profit before American Water operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Other Operating Expenses

Other Operating Expenses is the expense which generally does not depend on sales or production quantities of American Water Works. It is also known as American Water overhead expenses. Typically these expenses include marketing, rent and utilities, office, leases, and other overhead cost. Expenses incurred from non-core business activities, including administrative and general expenses, but excluding costs directly related to production.
Most indicators from American Water's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into American Water Works current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Issuance Of Capital Stock is expected to rise to about 1.8 B this year, although the value of Selling General Administrative will most likely fall to about 1.6 B.
 2021 2022 2023 2024 (projected)
Gross Profit2.2B2.2B2.5B1.3B
Total Revenue3.9B3.8B4.2B2.2B

American Water fundamental ratios Correlations

0.990.750.680.981.00.990.640.611.00.120.650.940.561.00.880.090.851.00.970.860.47-0.440.380.68-0.67
0.990.740.70.960.991.00.670.630.990.070.660.910.530.990.870.090.80.990.960.890.5-0.470.380.73-0.63
0.750.740.470.760.750.730.490.570.750.240.60.80.440.740.710.490.670.740.760.660.34-0.160.280.37-0.53
0.680.70.470.540.670.710.30.420.67-0.330.360.690.670.680.40.250.50.730.560.70.91-0.490.260.58-0.58
0.980.960.760.540.980.960.650.60.980.210.660.930.50.970.930.050.870.960.970.790.33-0.370.40.61-0.64
1.00.990.750.670.980.990.670.611.00.090.650.940.530.990.90.060.830.990.970.850.46-0.460.360.69-0.65
0.991.00.730.710.960.990.680.610.990.050.640.910.530.990.870.080.791.00.970.890.5-0.480.360.75-0.63
0.640.670.490.30.650.670.680.580.63-0.190.640.47-0.20.630.79-0.270.190.620.770.670.11-0.76-0.120.80.13
0.610.630.570.420.60.610.610.580.590.10.990.490.090.60.550.120.390.610.570.790.38-0.47-0.030.38-0.17
1.00.990.750.670.981.00.990.630.590.120.640.950.571.00.880.080.860.990.970.850.47-0.420.390.67-0.68
0.120.070.24-0.330.210.090.05-0.190.10.120.140.160.270.130.070.420.40.070.090.11-0.50.630.4-0.36-0.35
0.650.660.60.360.660.650.640.640.990.640.140.530.060.630.640.040.440.630.630.770.29-0.47-0.010.39-0.17
0.940.910.80.690.930.940.910.470.490.950.160.530.670.930.810.260.90.930.890.740.52-0.270.390.53-0.78
0.560.530.440.670.50.530.53-0.20.090.570.270.060.670.580.250.440.770.580.40.390.520.20.720.1-0.93
1.00.990.740.680.970.990.990.630.61.00.130.630.930.580.860.10.841.00.960.870.47-0.420.40.68-0.68
0.880.870.710.40.930.90.870.790.550.880.070.640.810.250.86-0.120.690.840.950.670.22-0.430.290.73-0.39
0.090.090.490.250.050.060.08-0.270.120.080.420.040.260.440.1-0.120.240.110.020.240.260.370.29-0.19-0.41
0.850.80.670.50.870.830.790.190.390.860.40.440.90.770.840.690.240.830.750.590.350.020.590.27-0.91
1.00.990.740.730.960.991.00.620.610.990.070.630.930.581.00.840.110.830.950.880.53-0.460.370.69-0.68
0.970.960.760.560.970.970.970.770.570.970.090.630.890.40.960.950.020.750.950.810.33-0.480.340.75-0.52
0.860.890.660.70.790.850.890.670.790.850.110.770.740.390.870.670.240.590.880.810.51-0.540.210.66-0.45
0.470.50.340.910.330.460.50.110.380.47-0.50.290.520.520.470.220.260.350.530.330.51-0.420.070.44-0.47
-0.44-0.47-0.16-0.49-0.37-0.46-0.48-0.76-0.47-0.420.63-0.47-0.270.2-0.42-0.430.370.02-0.46-0.48-0.54-0.420.33-0.65-0.2
0.380.380.280.260.40.360.36-0.12-0.030.390.4-0.010.390.720.40.290.290.590.370.340.210.070.330.12-0.66
0.680.730.370.580.610.690.750.80.380.67-0.360.390.530.10.680.73-0.190.270.690.750.660.44-0.650.12-0.12
-0.67-0.63-0.53-0.58-0.64-0.65-0.630.13-0.17-0.68-0.35-0.17-0.78-0.93-0.68-0.39-0.41-0.91-0.68-0.52-0.45-0.47-0.2-0.66-0.12
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American Water Account Relationship Matchups

American Water fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets22.7B24.8B26.1B27.8B30.3B31.8B
Short Long Term Debt Total9.5B11.0B11.1B12.5B12.4B13.1B
Other Current Liab302M1.0B1.1B1.1B1.1B1.2B
Total Current Liabilities2.0B2.9B2.1B2.8B2.2B1.2B
Total Stockholder Equity6.1B6.5B7.3B7.7B9.8B10.3B
Property Plant And Equipment Net18.3B19.8B21.2B23.3B25.5B26.8B
Net Debt9.5B10.5B10.9B12.4B12.1B12.7B
Retained Earnings(207M)102M925M1.3B1.7B1.7B
Cash60M547M116M85M330M346.5M
Non Current Assets Total21.4B22.9B24.5B26.5B28.9B30.4B
Non Currrent Assets Other1.5B1.5B2.2B(495M)2.1B2.2B
Cash And Short Term Investments60M547M116M85M426M447.3M
Net Receivables466M527M568M609M641M673.1M
Liabilities And Stockholders Equity22.7B24.8B26.1B27.8B30.3B31.8B
Non Current Liabilities Total14.5B15.4B16.6B17.3B18.4B19.3B
Inventory44M47M57M98M112M117.6M
Other Current Assets118M774M776M359M210M218.3M
Other Stockholder Equity6.4B6.4B6.4B6.4B8.2B8.6B
Total Liab16.6B18.3B18.8B20.1B20.5B21.5B
Property Plant And Equipment Gross18.3B19.8B27.5B29.8B32.3B33.9B
Total Current Assets1.3B1.9B1.6B1.3B1.4B1.5B
Accumulated Other Comprehensive Income(36M)(49M)(45M)(23M)(26M)(27.3M)
Short Term Debt814M1.6B641M1.5B654M552.7M
Accounts Payable203M189M235M254M294M151.4M
Current Deferred Revenue726M729M965M2.4B951M998.6M
Other Liab5.8B6.0B6.2B6.3B7.2B3.6B
Other Assets1.5B1.5B2.2B1.4B1.6B1.3B
Long Term Debt8.6B9.3B10.3B10.9B11.7B6.9B
Short Term Investments8M11M17M67M62M65.1M
Property Plant Equipment18.2B19.7B21.2B6.5B7.5B14.0B
Treasury Stock(297M)(338M)(348M)(365M)(419.8M)(440.7M)
Good Will1.5B1.5B1.1B1.1B1.3B1.4B
Net Tangible Assets6.1B6.5B10.1B10.5B12.1B6.4B
Retained Earnings Total Equity(207M)102M925M1.3B1.5B1.5B

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When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.084
Dividend Share
2.945
Earnings Share
5.04
Revenue Per Share
23.124
Quarterly Revenue Growth
0.134
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Water's market value can be influenced by many factors that don't directly affect American Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.