California Water Service Group (CWT)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	190,807	51,911	96,011	101,125	96,831
Total stockholders’ equity	US$ in thousands	1,638,290	1,426,730	1,317,590	1,177,590	921,344
ROE		11.65%	3.64%	7.29%	8.59%	10.51%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $190,807K ÷ $1,638,290K
= 11.65%

The return on equity (ROE) for California Water Service Group has displayed fluctuations over the years. It stood at 10.51% as of December 31, 2020, signaling a solid performance in utilizing shareholder equity to generate profits.

However, there was a decline in ROE to 8.59% by December 31, 2021, possibly indicating challenges in maintaining or increasing profitability relative to the shareholder investments. The trend continued with a further reduction to 7.29% by December 31, 2022.

By December 31, 2023, the ROE dropped significantly to 3.64%, suggesting a notable decline in the company's ability to generate returns from equity during that period. This could be a cause for concern for investors and management alike.

Despite the downward trend observed in the previous years, the ROE experienced a notable recovery, reaching 11.65% by December 31, 2024. This rebound may indicate improved efficiency in utilizing equity to generate profits, potentially reflecting positively on the company's financial performance and management decisions.