Nextera Energy Inc (NEE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,310,000 | 4,147,000 | 3,573,000 | 2,919,000 | 3,769,000 |
| Total stockholders’ equity | US$ in thousands | 47,468,000 | 39,229,000 | 37,202,000 | 36,513,000 | 37,005,000 |
| ROE | 15.40% | 10.57% | 9.60% | 7.99% | 10.19% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,310,000K ÷ $47,468,000K
= 15.40%
NextEra Energy Inc's Return on Equity (ROE) has shown a positive trend over the past five years. The ROE has consistently improved from 10.19% in 2019 to 15.40% in 2023. This indicates that the company has been effectively utilizing shareholders' equity to generate profits for its investors.
The gradual increase in ROE reflects a strengthening financial performance and efficient management of resources by NextEra Energy Inc. A higher ROE signifies that the company is generating more profits relative to its shareholders' equity, which is a positive indicator of financial health and operational efficiency.
Overall, the improving trend in ROE over the years suggests that NextEra Energy Inc has been successful in enhancing shareholder value and generating sustainable returns on investment.
Peer comparison
Dec 31, 2023