American Electric Power Co Inc (AEP)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	3,916,200	4,217,300	3,771,700	3,166,400	2,943,100	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
Total stockholders’ equity	US$ in thousands	26,943,800	26,617,400	25,803,300	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
ROE		14.53%	15.84%	14.62%	12.54%	11.63%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,916,200K ÷ $26,943,800K
= 14.53%

American Electric Power Co Inc's return on equity (ROE) has shown fluctuations over the past few years. The ROE was stable around the 9-11% range from 2019 to 2022, with some minor variations. In the first quarter of 2023, there was a slight decrease to 10.57%, followed by slight further declines in the subsequent quarters.

However, there was a significant improvement in the ROE in the first quarter of 2024, where it reached 14.62%. This increase continued in the following periods, reaching 15.84% in the third quarter of 2024. The ROE then slightly decreased to 14.53% by the end of 2024.

Overall, the trend in the ROE for American Electric Power Co Inc has been positive in recent quarters, showing a notable improvement in profitability and efficiency in generating returns for shareholders. This increasing trend indicates the company's efforts to utilize its equity more effectively to generate profits for its shareholders.