Constellation Energy Corp (CEG)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 3,749,000 1,623,000 -154,000 -73,000 589,000
Total stockholders’ equity US$ in thousands 13,166,000 10,925,000 11,018,000 11,219,000 12,399,000
ROE 28.47% 14.86% -1.40% -0.65% 4.75%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,749,000K ÷ $13,166,000K
= 28.47%

Constellation Energy Corp's return on equity (ROE) has shown varying trends over the past five years. In December 2020, the ROE was 4.75%, indicating a modest return on the shareholders' equity. However, in the following years, the company experienced negative ROE percentages, with -0.65% in December 2021, -1.40% in December 2022. This trend signified that the company was not effectively utilizing its equity to generate profits during those periods.

In December 2023, Constellation Energy Corp saw a significant improvement in its ROE, with a rate of 14.86%, reflecting a strong performance in utilizing shareholders' equity to generate profits. This increase could suggest improved operational efficiency and better financial management.

The most recent data for December 2024 shows a notable increase in ROE to 28.47%, indicating a substantial improvement in profitability and efficiency in utilizing equity compared to the previous years.

Overall, the fluctuating trend in ROE for Constellation Energy Corp suggests that the company has faced challenges in generating consistent returns on shareholders' equity in the past but has shown improvement in recent years. It would be important to monitor future ROE trends to assess the company's continued financial performance and management effectiveness.