Duke Energy Corporation (DUK)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,841,000 | 2,550,000 | 3,908,000 | 1,377,000 | 3,748,000 |
| Total stockholders’ equity | US$ in thousands | 49,112,000 | 49,322,000 | 49,296,000 | 47,964,000 | 46,822,000 |
| ROE | 5.78% | 5.17% | 7.93% | 2.87% | 8.00% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,841,000K ÷ $49,112,000K
= 5.78%
Looking at Duke Energy Corp.'s Return on Equity (ROE) over the past five years, we observe fluctuations in its performance. In 2023, the ROE stands at 5.57%, showing a slight improvement compared to the previous year's ROE of 4.96%. However, when we compare it with higher levels seen in 2021 and 2019 (7.71% and 7.92% respectively), the current ROE appears relatively subdued.
The ROE of 2.65% in 2020 marked a significant dip in performance, indicating challenges faced by the company during that period. This was followed by a positive rebound in 2021, where the ROE recovered to 7.71%, demonstrating an apparent improvement in the company's ability to generate profit from shareholders' equity.
Although the 2023 ROE has improved compared to the previous year, it would be essential to delve deeper into the company's financial statements and operations to understand the factors influencing this ratio. Fluctuations in ROE can be influenced by various factors such as profitability, leverage, efficiency, and management effectiveness.
Overall, while Duke Energy Corp.'s ROE has shown variability over the years, it will be crucial to monitor future trends in this ratio to assess the company's ability to generate returns for its shareholders in a consistent and sustainable manner.
Peer comparison
Dec 31, 2023