Consolidated Edison Inc (ED)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,519,000 | 1,660,000 | 1,346,000 | 1,101,000 | 1,343,000 |
| Total stockholders’ equity | US$ in thousands | 21,158,000 | 20,687,000 | 20,037,000 | 18,847,000 | 18,022,000 |
| ROE | 11.91% | 8.02% | 6.72% | 5.84% | 7.45% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,519,000K ÷ $21,158,000K
= 11.91%
Consolidated Edison, Inc.'s return on equity (ROE) has shown a positive trend over the past five years. ROE indicates the efficiency with which the company is utilizing its shareholders' equity to generate profits. The ROE has increased steadily from 7.45% in 2019 to 11.91% in 2023, reflecting an improvement in the company's profitability and operational efficiency.
The upward trajectory of ROE suggests that Consolidated Edison, Inc. has been able to generate higher returns for its shareholders over the years. This could be indicative of effective management of assets and resources, improved operational performance, or strategic decision-making by the company.
The consistent growth in ROE demonstrates the company's ability to generate profits relative to the shareholders' equity invested in the business. Investors often view a rising ROE positively as it signifies an improvement in the company's financial performance and potential for increasing shareholder value.
Overall, the increasing trend in Consolidated Edison, Inc.'s ROE from 2019 to 2023 indicates a favorable development in the company's financial position and operational efficiency, highlighting its ability to generate sustainable returns for shareholders.
Peer comparison
Dec 31, 2023