Eversource Energy (ES)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,705,710 | 2,399,340 | 2,198,150 | 1,993,320 | 1,988,730 |
| Total assets | US$ in thousands | 59,594,500 | 55,612,200 | 53,230,900 | 48,492,100 | 46,099,600 |
| Operating ROA | 4.54% | 4.31% | 4.13% | 4.11% | 4.31% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,705,710K ÷ $59,594,500K
= 4.54%
To analyze Eversource Energy's operating return on assets (ROA) over the period provided, we observe a stable trend with slight fluctuations. The operating ROA for the years ranged from 4.11% to 4.54%, indicating consistent operational efficiency in generating profits relative to its asset base.
In 2020, the operating ROA stood at 4.31% and experienced a slight decline to 4.11% in 2021. However, the company managed to improve its performance in 2022 and 2023, with the ROA figures at 4.13% and 4.31% respectively. Notably, there was a significant increase in 2024, reaching 4.54%, showcasing a stronger return on assets.
Overall, these results suggest that Eversource Energy effectively utilized its assets to generate operating income during the period under review. The increasing trend in operating ROA indicates the company's ability to enhance operational efficiency and profitability, which is essential for sustaining long-term growth and creating value for its stakeholders.
Peer comparison
Dec 31, 2024