CenterPoint Energy Inc (CNP)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,019,000 | 963,000 | 1,052,000 | 942,000 | 917,000 | 859,000 | 779,000 | 851,000 | 1,057,000 | 1,577,000 | 1,593,000 | 1,654,000 | 1,486,000 | 1,032,000 | 935,000 | 789,000 | -773,000 | -816,000 | -667,000 | -577,000 |
| Total stockholders’ equity | US$ in thousands | 10,666,000 | 10,535,000 | 10,354,000 | 9,998,000 | 9,667,000 | 9,585,000 | 10,366,000 | 10,356,000 | 10,045,000 | 9,989,000 | 10,023,000 | 9,951,000 | 9,415,000 | 8,865,000 | 8,870,000 | 8,716,000 | 8,348,000 | 8,388,000 | 8,392,000 | 6,970,000 |
| ROE | 9.55% | 9.14% | 10.16% | 9.42% | 9.49% | 8.96% | 7.51% | 8.22% | 10.52% | 15.79% | 15.89% | 16.62% | 15.78% | 11.64% | 10.54% | 9.05% | -9.26% | -9.73% | -7.95% | -8.28% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,019,000K ÷ $10,666,000K
= 9.55%
CenterPoint Energy Inc's return on equity (ROE) has shown fluctuation over the past several quarters. The ROE was negative in the first three quarters of 2020, indicating that the company was not generating sufficient profits relative to shareholders' equity during that period. However, there was a significant improvement in ROE in the following quarters of 2021 and 2022, reaching double digits and even exceeding 15% in some quarters.
In the subsequent quarters of 2023 and 2024, the ROE declined slightly but remained positive, indicating that the company continued to generate profit relative to shareholders' equity, albeit at a lower rate compared to the peak in 2022.
Overall, the positive trend in ROE from 2021 to 2022 signifies improved efficiency in utilizing shareholders' equity to generate profits. The management should monitor the trend in ROE closely to ensure continued profitability and value creation for shareholders.
Peer comparison
Dec 31, 2024