EQT Corporation (EQT)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 230,577 1,735,230 1,770,960 -1,142,750 -958,799
Total stockholders’ equity US$ in thousands 20,597,600 14,773,200 11,172,500 9,954,760 9,255,240
ROE 1.12% 11.75% 15.85% -11.48% -10.36%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $230,577K ÷ $20,597,600K
= 1.12%

EQT Corporation's return on equity (ROE) experienced fluctuations over the five-year period from December 31, 2020, to December 31, 2024. In 2020 and 2021, the company reported negative ROE figures of -10.36% and -11.48%, indicating that the company was not generating sufficient profits relative to its equity during these periods.

However, there was a significant turnaround in 2022 when EQT Corporation achieved an ROE of 15.85%, showing a marked improvement in its profitability and efficiency in utilizing shareholder equity. This positive trend continued in 2023, with the ROE further increasing to 11.75%, indicating sustained profitability and value creation for shareholders.

In contrast, in 2024, EQT Corporation's ROE dropped to 1.12%, signaling a decline in its ability to generate returns on the equity invested by its shareholders compared to the previous year. This decrease could indicate challenges in maintaining or improving profitability levels, potentially impacting shareholder value.

Overall, EQT Corporation's ROE trend reflects a mixed performance, with notable improvements in profitability in 2022 and 2023 following two years of negative returns, but showing a slight decrease in 2024. The company may need to focus on strategies to sustain or enhance its profitability levels to ensure long-term value creation for its shareholders.


See also:

EQT Corporation Return on Equity (ROE)