MDU Resources Group Inc (MDU)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	414,707	367,489	378,131	390,205	335,453
Total stockholders’ equity	US$ in thousands	2,905,230	3,587,130	3,382,870	3,079,100	2,847,250
ROE		14.27%	10.24%	11.18%	12.67%	11.78%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $414,707K ÷ $2,905,230K
= 14.27%

MDU Resources Group Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. The ROE for the most recent year, Dec 31, 2023, stands at 14.27%, marking an improvement from the previous year's 10.24%. This increase indicates that the company generated $14.27 in net income for every dollar of shareholder equity in 2023, compared to $10.24 in 2022.

While the ROE for 2023 is higher than the prior year, it is still below the levels seen in 2020 and 2019, which were 12.67% and 11.78% respectively. This suggests that MDU Resources Group Inc was more efficient in utilizing shareholder equity to generate profits in those years compared to 2023.

Overall, the ROE figures indicate that MDU Resources Group Inc's ability to generate profits relative to its shareholder equity has shown some improvement in 2023, but the company may benefit from further enhancing its profitability and operational efficiency to achieve higher returns for its shareholders.