IDACORP Inc (IDA)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	289,174	261,195	258,982	245,550	237,417
Total stockholders’ equity	US$ in thousands	3,330,950	2,907,570	2,807,240	2,668,440	2,559,980
ROE		8.68%	8.98%	9.23%	9.20%	9.27%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $289,174K ÷ $3,330,950K
= 8.68%

Based on the data provided, IDACORP Inc's return on equity (ROE) has shown a relatively stable trend over the years. The ROE decreased slightly from 9.27% as of December 31, 2020, to 8.68% as of December 31, 2024. This downward trajectory suggests a decline in the company's ability to generate profit from shareholders' equity.

ROE is a key profitability ratio that measures how efficiently a company is utilizing its equity to generate profits. A higher ROE indicates better profitability and efficient management of shareholder funds. In this case, the decreasing trend in ROE could be a cause for concern as it may reflect challenges in maintaining profitability relative to the equity invested in the company.

It would be advisable for stakeholders and investors to closely monitor IDACORP Inc's financial performance and assess the factors contributing to the declining ROE. Identifying the reasons behind the decrease in ROE can help management take corrective actions to improve profitability and enhance shareholder value in the future.