Ameren Corp (AEE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,182,000 | 1,152,000 | 1,074,000 | 990,000 | 871,000 |
| Total stockholders’ equity | US$ in thousands | 7,371,000 | 11,349,000 | 10,508,000 | 9,700,000 | 8,938,000 |
| ROE | 16.04% | 10.15% | 10.22% | 10.21% | 9.74% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,182,000K ÷ $7,371,000K
= 16.04%
The return on equity (ROE) of Ameren Corp has shown a gradual improvement over the years, starting from 9.74% in December 2020 and steadily increasing to 10.21% in December 2021, 10.22% in December 2022, and 10.15% in December 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits. However, there was a significant spike in ROE to 16.04% by December 2024, suggesting a notable increase in profitability relative to the equity invested. This improvement may be attributed to various factors such as efficient cost management, revenue growth, or strategic investments. Overall, the increasing trend in ROE reflects positively on Ameren Corp's financial performance and the effectiveness of its operational strategies.
Peer comparison
Dec 31, 2024