Edison International (EIX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,407,000 | 824,000 | 925,000 | 739,000 | 1,284,000 |
| Total stockholders’ equity | US$ in thousands | 15,501,000 | 15,621,000 | 15,888,000 | 14,048,000 | 15,496,000 |
| ROE | 9.08% | 5.27% | 5.82% | 5.26% | 8.29% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,407,000K ÷ $15,501,000K
= 9.08%
The return on equity (ROE) for Edison International has shown fluctuations over the past five years. In 2023, the ROE was 7.72%, representing an improvement compared to the previous year's 3.92%. However, it is still below the levels seen in 2019 when the ROE was 9.65%.
The trend indicates that the company's ability to generate profits from shareholders' equity has varied over the years, with a significant decrease in 2022 followed by a moderate rebound in 2023. The 2023 ROE of 7.72% suggests that for every dollar of shareholders' equity, the company generated a return of 7.72 cents.
Further analysis may be necessary to understand the factors driving the changes in ROE, such as profitability, efficiency in asset utilization, financial leverage, or other strategic decisions made by the company. Overall, the improvement in 2023 indicates a positive trend, but continued monitoring is advisable to assess the company's financial performance.
Peer comparison
Dec 31, 2023