Eversource Energy (ES)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-434,700	1,412,400	1,228,050	1,212,700	916,600
Total assets	US$ in thousands	55,612,200	53,230,900	48,492,100	46,099,600	41,123,900
ROA		-0.78%	2.65%	2.53%	2.63%	2.23%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-434,700K ÷ $55,612,200K
= -0.78%

Eversource Energy's return on assets (ROA) has shown variability over the past five years. In 2019, the company reported an ROA of 2.21%, which increased to 2.61% in 2020 before slightly dropping to 2.52% in 2021. However, the ROA experienced a significant decline in 2022 to 2.64% and further decreased to -0.80% in 2023.

The negative ROA in 2023 indicates that the company's net income generated from its assets was not sufficient to cover the total assets held during that period. This may be a cause for concern as it suggests a decline in profitability and/or inefficient asset utilization.

It is essential for Eversource Energy to investigate the factors contributing to the negative ROA in 2023 and take necessary steps to improve its profitability and asset management in order to enhance shareholder value and ensure long-term sustainability.