California Water Service Group (CWT)
Return on equity (ROE)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 51,911 | 96,011 | 101,125 | 96,831 | 63,116 |
Total stockholders’ equity | US$ in thousands | 1,426,730 | 1,317,590 | 1,177,590 | 921,344 | 779,906 |
ROE | 3.64% | 7.29% | 8.59% | 10.51% | 8.09% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $51,911K ÷ $1,426,730K
= 3.64%
California Water Service Group's return on equity (ROE) has been on a downward trend over the past five years. In 2023, the ROE stands at 3.64%, a notable decrease from 7.29% in 2022 and 8.59% in 2021. This declining trend suggests that the company's ability to generate profit from shareholders' equity has weakened. The ROE of 3.64% in 2023 indicates that for every dollar of shareholders' equity, the company generated a profit of 3.64 cents. This decrease may raise concerns among investors about the company's profitability and efficiency in utilizing shareholders' funds. Further analysis of the company's financial performance and operational efficiency is warranted to understand the factors contributing to the declining ROE and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023