Chesapeake Utilities Corporation (CPK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 118,600 | 87,212 | 89,796 | 83,466 | 71,498 |
| Total stockholders’ equity | US$ in thousands | 1,390,200 | 1,246,100 | 832,801 | 774,130 | 697,085 |
| ROE | 8.53% | 7.00% | 10.78% | 10.78% | 10.26% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $118,600K ÷ $1,390,200K
= 8.53%
The return on equity (ROE) of Chesapeake Utilities Corporation has fluctuated over the past five years. In December 2020, the ROE stood at 10.26%, showing a decent return generated on shareholders' equity. By December 2021 and 2022, the ROE improved slightly to 10.78%, indicating a continued stable performance in generating profits relative to the equity invested.
However, there was a notable decrease in ROE by December 2023, dropping to 7.00%, which suggests a decrease in profitability compared to the previous years. This could be a concern for stakeholders as it indicates a less efficient use of equity to generate earnings.
In December 2024, there was a partial recovery in ROE to 8.53%, although it still remained below the levels seen in 2021 and 2022. The trend in ROE indicates some volatility in the company's ability to generate returns for its equity holders, which may need to be further investigated to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024