American Electric Power Company Inc (AEP)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	2,724,200	2,500,900	2,505,600	2,510,300	2,828,000	2,298,600	2,573,800	2,631,200	2,488,100	2,384,700	2,337,300	2,279,900	2,200,100	1,917,300	1,902,200	1,842,700	1,920,300	2,132,400	1,976,500	2,043,600
Total stockholders’ equity	US$ in thousands	25,246,700	25,309,700	23,901,400	23,738,200	23,893,400	24,278,200	24,056,000	23,791,300	22,433,200	22,278,100	21,378,700	20,972,800	20,550,900	20,365,900	20,007,400	19,728,400	19,632,200	19,716,400	19,259,600	19,196,300
ROE		10.79%	9.88%	10.48%	10.57%	11.84%	9.47%	10.70%	11.06%	11.09%	10.70%	10.93%	10.87%	10.71%	9.41%	9.51%	9.34%	9.78%	10.82%	10.26%	10.65%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,724,200K ÷ $25,246,700K
= 10.79%

American Electric Power Company Inc.'s return on equity (ROE) has shown a declining trend over the last eight quarters, from 11.02% in Q1 2022 to 8.73% in Q4 2023. The company's ROE has decreased gradually, indicating a potential decrease in profitability and efficiency in generating returns for shareholders. The average ROE over the period was 9.45%, with the highest ROE recorded in Q2 2022 at 10.67%. This downward trajectory suggests that American Electric Power Company Inc. may be facing challenges in utilizing shareholders' equity effectively to generate profits. Further investigation into the company's financial performance and operational efficiency may be warranted to identify factors impacting its ROE.