Entergy Corporation (ETR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,055,590 | 2,362,310 | 1,097,140 | 1,118,720 | 1,406,650 |
| Total stockholders’ equity | US$ in thousands | 15,083,900 | 14,657,600 | 13,002,000 | 11,637,300 | 10,926,100 |
| ROE | 7.00% | 16.12% | 8.44% | 9.61% | 12.87% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,055,590K ÷ $15,083,900K
= 7.00%
Entergy Corporation's Return on Equity (ROE) has shown fluctuations over the years.
- In 2020, the ROE was 12.87%, indicating that the company generated a return of $12.87 for every dollar of shareholders' equity.
- By the end of 2021, the ROE decreased to 9.61%, suggesting a decline in the efficiency of utilizing equity to generate profits.
- The trend continued in 2022 with an ROE of 8.44%, potentially indicating challenges or inefficiencies within the company.
- However, in 2023, there was a significant improvement as the ROE increased to 16.12%, signaling a possible turnaround or successful strategic initiatives.
- Unfortunately, in 2024, the ROE dropped to 7.00%, indicating a potential decrease in profitability relative to shareholders' equity.
Overall, the fluctuating ROE of Entergy Corporation reflects varying levels of profitability and efficiency in utilizing shareholders' equity over the analyzed period. This trend warrants further investigation into the company's financial performance and strategic decisions to assess the factors contributing to these changes.
Peer comparison
Dec 31, 2024