Eversource Energy (ES)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 811,653 | -442,240 | 1,404,880 | 1,220,530 | 1,205,170 |
| Total stockholders’ equity | US$ in thousands | 21,760,700 | 14,173,900 | 15,473,200 | 14,599,800 | 14,063,600 |
| ROE | 3.73% | -3.12% | 9.08% | 8.36% | 8.57% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $811,653K ÷ $21,760,700K
= 3.73%
Based on the provided data, Eversource Energy's Return on Equity (ROE) has shown some fluctuations over the years. Here is a breakdown of the ROE percentages:
- As of December 31, 2020, the ROE stood at 8.57%.
- By December 31, 2021, there was a slight decrease in the ROE to 8.36%.
- In the following year, December 31, 2022, the ROE increased to 9.08%.
- However, there was a significant drop in the ROE by December 31, 2023, where it reached -3.12%, indicating a period of negative returns on equity.
- By December 31, 2024, there was a partial recovery with the ROE standing at 3.73%.
The fluctuating trend in Eversource Energy's ROE suggests varying levels of profitability and efficiency in utilizing shareholders' equity over the years. The negative ROE in 2023 may raise concerns as it indicates the company was not generating sufficient profits relative to its equity. Further analysis of the underlying factors contributing to these fluctuations would be needed to understand the drivers behind the changes in ROE and to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024