CenterPoint Energy Inc (CNP)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,019,000 | 917,000 | 1,057,000 | 668,000 | -591,000 |
| Total stockholders’ equity | US$ in thousands | 10,666,000 | 9,667,000 | 10,045,000 | 9,415,000 | 8,348,000 |
| ROE | 9.55% | 9.49% | 10.52% | 7.10% | -7.08% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,019,000K ÷ $10,666,000K
= 9.55%
CenterPoint Energy Inc's return on equity (ROE) has shown significant improvement over the past few years. The company's ROE was negative at -7.08% as of December 31, 2020, indicating a lack of profitability relative to shareholders' equity.
However, there has been a positive turnaround in the subsequent years. By December 31, 2021, the ROE had increased to 7.10%, reflecting an improvement in the company's ability to generate profit from its equity base. This positive trend continued into 2022, with the ROE further increasing to 10.52%.
In 2023 and 2024, the ROE remained relatively stable, at 9.49% and 9.55% respectively. This consistency suggests that CenterPoint Energy Inc has been able to maintain its profitability and effectively utilize its shareholders' equity to generate returns.
Overall, the increasing trend in ROE signals a positive performance trajectory for CenterPoint Energy Inc, indicating that the company is becoming more efficient in generating profits relative to the equity invested by shareholders.
Peer comparison
Dec 31, 2024