FirstEnergy Corporation (FE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 978,000 | 1,102,000 | 406,000 | 1,283,000 | 1,079,000 |
| Total stockholders’ equity | US$ in thousands | 12,455,000 | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 |
| ROE | 7.85% | 10.56% | 3.99% | 14.79% | 14.91% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $978,000K ÷ $12,455,000K
= 7.85%
Based on the provided data, FirstEnergy Corporation's return on equity (ROE) has shown some fluctuations over the years. In 2020, the company had an ROE of 14.91%, which decreased slightly to 14.79% in 2021. However, there was a significant drop in ROE to 3.99% in 2022, indicating a decrease in profitability relative to the equity invested.
Subsequently, the ROE improved in 2023 to 10.56%, but it was still lower than the levels seen in 2020 and 2021. In 2024, the ROE further decreased to 7.85%, suggesting a continued challenge for the company in generating returns for its shareholders relative to the equity invested in the business.
Overall, the trend in FirstEnergy Corporation's ROE indicates some volatility and a general decline in profitability efficiency over the years, which may warrant further analysis to identify the underlying factors impacting the company's financial performance.
Peer comparison
Dec 31, 2024