Eversource Energy (ES)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 811,652 | -549,348 | -91,628 | -411,547 | -442,236 | 1,166,402 | 1,176,148 | 1,452,588 | 1,404,875 | 1,391,415 | 1,325,172 | 1,297,830 | 1,220,527 | 1,185,752 | 1,248,846 | 1,236,558 | 1,205,168 | 1,183,282 | 1,155,906 | 935,128 |
| Total stockholders’ equity | US$ in thousands | 15,039,400 | 26,982,100 | 14,818,700 | 14,543,600 | 14,173,900 | 15,685,900 | 15,554,100 | 15,749,400 | 15,473,200 | 15,279,200 | 15,057,200 | 14,836,700 | 14,599,800 | 14,411,600 | 14,311,900 | 14,233,400 | 14,063,600 | 13,980,000 | 13,805,300 | 13,210,000 |
| ROE | 5.40% | -2.04% | -0.62% | -2.83% | -3.12% | 7.44% | 7.56% | 9.22% | 9.08% | 9.11% | 8.80% | 8.75% | 8.36% | 8.23% | 8.73% | 8.69% | 8.57% | 8.46% | 8.37% | 7.08% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $811,652K ÷ $15,039,400K
= 5.40%
Eversource Energy's return on equity (ROE) has exhibited a fluctuating trend over the analyzed periods. The ROE started at a moderate level of 7.08% in March 2020 and gradually increased to 9.22% by March 2023, reflecting an improving profitability relative to shareholder equity.
However, the ROE experienced a sudden decline in the subsequent quarters, dropping to as low as -3.12% by December 2023. This negative ROE indicates that the company's net income was insufficient to cover the shareholders' equity, potentially raising concerns about the company's financial health and performance.
The negative trend reversed in the following periods, with the ROE rebounding to 5.40% by December 2024. This improvement suggests that Eversource Energy recovered from the previous setbacks and regained profitability relative to shareholder investments.
Overall, Eversource Energy's ROE has been volatile, showing periods of growth, decline, and recovery. Investors and analysts should continue monitoring the company's financial performance to assess its ability to generate returns on shareholders' equity effectively.
Peer comparison
Dec 31, 2024