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.