CenterPoint Energy Inc (CNP)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 917,000 | 1,057,000 | 1,486,000 | -773,000 | 791,000 |
| Total stockholders’ equity | US$ in thousands | 9,667,000 | 10,042,000 | 9,415,000 | 8,348,000 | 8,359,000 |
| ROE | 9.49% | 10.53% | 15.78% | -9.26% | 9.46% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $917,000K ÷ $9,667,000K
= 9.49%
Centerpoint Energy Inc.'s return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE was 8.97%, a decrease from the previous year's 10.03%. This decline may be of concern as it indicates lower profitability relative to shareholders' equity.
The ROE was highest in 2021 at 14.77%, suggesting that the company was able to generate more profit from the shareholders' equity invested during that year. However, it is worth noting that in 2020, the ROE was negative at -11.37%, indicating that the company experienced a loss relative to shareholders' equity that year.
Overall, the trend in ROE for Centerpoint Energy Inc. indicates some volatility, with fluctuations in profitability relative to shareholders' equity over the past five years. It is important for the company to closely monitor and analyze the factors influencing ROE to ensure sustainable and consistent returns for shareholders.
Peer comparison
Dec 31, 2023