Entergy Corporation (ETR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,356,540 | 1,103,170 | 1,118,490 | 1,241,230 | 848,661 |
| Total stockholders’ equity | US$ in thousands | 14,622,600 | 12,967,000 | 11,637,300 | 10,223,700 | 8,844,300 |
| ROE | 16.12% | 8.51% | 9.61% | 12.14% | 9.60% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,356,540K ÷ $14,622,600K
= 16.12%
Entergy Corp.'s return on equity (ROE) has shown some fluctuation over the past five years. In 2023, the ROE increased to 16.12% from 8.51% in 2022, indicating a significant improvement in the company's ability to generate profit from shareholders' equity. This surge in ROE suggests that Entergy Corp. became more efficient in utilizing its equity to generate earnings for its investors.
Comparing the recent ROE of 16.12% to the ROE of 2019 and 2020, which were 12.10% and 12.67%, respectively, the company's performance appears to have strengthened over the years. However, the ROE in 2023 remains lower than the 2019 figure, signifying potential room for further improvement.
Further analysis is required to understand the reasons behind the fluctuations in Entergy Corp.'s ROE and to assess the company's financial health and performance in more detail.
Peer comparison
Dec 31, 2023