MDU Resources Group Inc (MDU)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 281,108 | 414,707 | 367,489 | 378,131 | 390,205 |
| Total stockholders’ equity | US$ in thousands | 2,690,570 | 2,905,230 | 3,587,130 | 3,382,870 | 3,079,100 |
| ROE | 10.45% | 14.27% | 10.24% | 11.18% | 12.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $281,108K ÷ $2,690,570K
= 10.45%
Based on the data provided, MDU Resources Group Inc's return on equity (ROE) has experienced fluctuations over the past five years.
In December 2020, the ROE was at 12.67%, showing a decent return on shareholders' equity. However, by December 2021, the ROE had slightly decreased to 11.18%, indicating a dip in the company's ability to generate profits from the shareholders' equity.
The trend continued in December 2022 with the ROE dropping further to 10.24%, which may suggest possible challenges in efficiently utilizing the shareholders' equity to generate returns.
Nevertheless, there was a significant improvement by December 2023, where the ROE surged to 14.27%. This spike indicates a positive turnaround in the company's profitability and efficiency in utilizing equity to generate returns.
However, by December 2024, the ROE had declined again to 10.45%, indicating a potential setback in the company's profitability compared to the previous year.
Overall, while there have been fluctuations in MDU Resources Group Inc's ROE over the past five years, the recent improvement in 2023 is a positive sign, although the drop in 2024 warrants further monitoring to understand the company's performance and efficiency in generating returns for shareholders.
Peer comparison
Dec 31, 2024