Northwest Natural Gas Co (NWN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 78,871 | 93,868 | 86,303 | 78,666 | 76,781 |
| Total stockholders’ equity | US$ in thousands | 1,385,370 | 1,283,840 | 1,175,440 | 935,146 | 888,733 |
| ROE | 5.69% | 7.31% | 7.34% | 8.41% | 8.64% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $78,871K ÷ $1,385,370K
= 5.69%
Northwest Natural Gas Co's return on equity (ROE) has been gradually declining over the past five years. As of December 31, 2020, the ROE stood at 8.64%, showing a slight decrease to 8.41% by December 31, 2021. Subsequently, the ROE further decreased to 7.34% by December 31, 2022, and to 7.31% by December 31, 2023. The most significant drop occurred by December 31, 2024, where the ROE fell to 5.69%.
The declining trend in ROE indicates that the company's profitability in generating returns from shareholder equity has been diminishing. This could be a cause for concern as it suggests that the company may not be utilizing its equity resources effectively to generate profits for shareholders. Further analysis of the company's financial performance and operational efficiency may be necessary to address the decreasing trend in ROE and potential factors impacting it.
Peer comparison
Dec 31, 2024