Chesapeake Utilities Corporation (CPK)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 87,212 | 89,796 | 83,466 | 71,498 | 65,153 |
| Total stockholders’ equity | US$ in thousands | 1,246,100 | 832,801 | 774,130 | 697,085 | 561,577 |
| ROE | 7.00% | 10.78% | 10.78% | 10.26% | 11.60% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $87,212K ÷ $1,246,100K
= 7.00%
Chesapeake Utilities Corp's return on equity (ROE) has shown a declining trend over the past five years. The ROE decreased from 11.60% in 2019 to 7.00% in 2023. This decrease in ROE indicates that the company's profitability in generating returns from shareholders' equity has been diminishing.
The decreasing trend in ROE could be attributed to various factors such as a decrease in net income, an increase in shareholder equity, or inefficient utilization of assets. It is important for the company to assess the drivers behind this decline in ROE and take appropriate actions to improve profitability and efficiency in order to enhance shareholder value.
Overall, the declining ROE of Chesapeake Utilities Corp highlights the importance of closely monitoring financial performance metrics and implementing strategic measures to sustain and potentially improve the company's return on equity over time.
Peer comparison
Dec 31, 2023