Kinder Morgan Inc (KMI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,613,000 | 2,391,000 | 2,548,000 | 1,784,000 | 119,000 |
| Total stockholders’ equity | US$ in thousands | 30,531,000 | 30,306,000 | 30,742,000 | 30,823,000 | 31,436,000 |
| ROE | 8.56% | 7.89% | 8.29% | 5.79% | 0.38% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,613,000K ÷ $30,531,000K
= 8.56%
From 2020 to 2024, Kinder Morgan Inc's return on equity (ROE) has shown a positive trend, increasing steadily over the years. In 2020, the ROE was only 0.38%, indicating a low profitability relative to the equity invested. However, by December 31, 2024, the ROE had improved significantly to 8.56%, reflecting a more robust return on shareholders' equity.
The consistent growth in ROE from 2020 to 2024 suggests that Kinder Morgan Inc has been effectively utilizing its equity to generate profits. This improvement could be attributed to various factors such as operational efficiency, strategic investments, and better financial management practices.
Overall, the increasing trend in ROE indicates that Kinder Morgan Inc has been making positive strides in enhancing its profitability and creating value for its shareholders over the years. This trend is a positive signal for investors and stakeholders, showcasing the company's ability to generate healthy returns on the equity capital invested.
Peer comparison
Dec 31, 2024