American Electric Power Co Inc (AEP)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 2,967,100 2,208,100 2,307,200 2,488,100 2,200,100
Total stockholders’ equity US$ in thousands 26,943,800 25,246,700 23,893,400 22,433,200 20,550,900
ROE 11.01% 8.75% 9.66% 11.09% 10.71%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,967,100K ÷ $26,943,800K
= 11.01%

American Electric Power Co Inc's return on equity (ROE) has shown some fluctuations over the past five years. The ROE was 10.71% as of December 31, 2020, which slightly increased to 11.09% by December 31, 2021. However, there was a decline in ROE to 9.66% by December 31, 2022, followed by a further decrease to 8.75% by December 31, 2023. The ROE then rebounded to 11.01% by December 31, 2024.

Overall, the trend in ROE indicates some volatility in the company's ability to generate profits from shareholders' equity over the years. It is essential for American Electric Power Co Inc to closely monitor and improve its ROE performance to ensure sustainable and efficient use of its equity capital.