The AES Corporation (AES)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 249,000 | -546,000 | -409,000 | 46,000 | 303,000 |
| Total stockholders’ equity | US$ in thousands | 2,488,000 | 2,437,000 | 2,798,000 | 2,634,000 | 2,996,000 |
| ROE | 10.01% | -22.40% | -14.62% | 1.75% | 10.11% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $249,000K ÷ $2,488,000K
= 10.01%
Over the past five years, AES Corp.'s return on equity (ROE) has varied significantly. In 2019, the ROE stood at 10.11%, indicating a healthy return for shareholders. However, this figure declined to 1.75% in 2020, reflecting a decrease in profitability or efficiency in generating returns from shareholders' equity.
The company faced a notable decrease in 2021, with an ROE of -14.62%, signifying a significant loss or inefficiency in utilizing shareholders' equity to generate profits. This negative ROE suggests that the company experienced a net loss for the year in relation to its equity.
The trend continued in 2022 with a further decline in ROE to -22.40%, showing a deterioration in the company's ability to generate profitability from shareholders' equity. This indicates potential financial distress or operational challenges that impacted the company's bottom line.
In 2023, there was a slight improvement in the ROE to 10.01%, although it remained below the 2019 level. This could indicate some recovery in the company's profitability and efficiency in utilizing shareholders' equity but still falls short of the previous peak.
Overall, the fluctuation in AES Corp.'s ROE over the past five years highlights the company's varying levels of profitability and efficiency in generating returns for shareholders. Investors and stakeholders may need to closely monitor the company's financial performance and operational strategies to assess its future prospects and sustainability.