The AES Corporation (AES)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,679,000 | 249,000 | -546,000 | -409,000 | 46,000 |
| Total stockholders’ equity | US$ in thousands | 3,644,000 | 2,488,000 | 2,437,000 | 2,798,000 | 2,634,000 |
| ROE | 46.08% | 10.01% | -22.40% | -14.62% | 1.75% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,679,000K ÷ $3,644,000K
= 46.08%
The return on equity (ROE) of The AES Corporation has shown significant fluctuations over the past five years.
At the end of December 2020, the ROE stood at a modest 1.75%, indicating relatively lower profitability relative to shareholder equity. However, by the end of December 2021, the ROE plummeted to -14.62%, suggesting a negative return that may raise concerns about the company's ability to generate profits from shareholders' investments.
The trend worsened in December 2022 with a ROE of -22.40%, indicating deeper profitability challenges and potentially inefficient use of shareholder funds.
However, there was a notable turnaround in December 2023, with the ROE climbing to 10.01%, suggesting improved profitability and a better utilization of equity to generate returns for shareholders.
The most recent data as of December 2024 shows a significant jump in ROE to 46.08%, indicating a strong performance and efficient use of equity to generate profits, potentially signaling a positive outlook for the company.
Overall, the fluctuating ROE of The AES Corporation over the past five years reflects varying levels of profitability and efficiency in converting shareholder equity into returns, suggesting the need for close monitoring of the company's financial performance and strategies.