GE Vernova LLC (GEV)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | -438,000 | -2,736,000 | -633,000 |
| Total stockholders’ equity | US$ in thousands | 7,416,000 | 10,650,000 | — |
| ROE | -5.91% | -25.69% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-438,000K ÷ $7,416,000K
= -5.91%
The return on equity (ROE) for GE Vernova LLC has shown a significant improvement over the past two years. In 2021, the ROE was not available. However, in 2022, the ROE was at a low of -25.69%, indicating that the company's ability to generate profits from its shareholders' equity was significantly negative. This was a concerning metric, suggesting inefficiency in the utilization of the company's equity.
In contrast, by the end of 2023, the ROE had improved to -5.91%. While still negative, this represents a positive trend towards profitability compared to the previous year. The company may have implemented strategies to enhance its operational efficiency or improve its financial position, leading to a better return on equity ratio. However, as the ROE remains negative, there is still room for improvement in utilizing shareholder equity effectively.
It is important for GE Vernova LLC to continue monitoring and analyzing its ROE to ensure sustainable growth and value creation for its shareholders. A positive ROE would indicate that the company is generating more profit from its equity investments, reflecting a healthier financial performance.
Peer comparison
Dec 31, 2023