OGE Energy Corporation (OGE)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	416,800	665,700	737,300	-173,700	433,600
Total stockholders’ equity	US$ in thousands	4,511,600	4,413,400	4,056,300	3,631,800	4,139,500
ROE		9.24%	15.08%	18.18%	-4.78%	10.47%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $416,800K ÷ $4,511,600K
= 9.24%

The return on equity (ROE) of Oge Energy Corp. has displayed fluctuations over the past five years. In 2023, the ROE stood at 9.24%, indicating a decrease from the previous year's level of 15.08%. The drop in ROE suggests a decline in the company's ability to generate profits from its shareholders' equity during the year.

Comparing the ROE of 2023 to the levels in 2021 and 2020, where it was 18.18% and -4.78% respectively, it is evident that Oge Energy Corp. experienced a significant decline in profitability performance in 2023. The negative ROE in 2020 signifies that the company incurred a net loss, impairing its shareholders' equity.

Despite the recent decrease in ROE, Oge Energy Corp. demonstrated a relatively strong performance in generating returns for shareholders in 2019 with an ROE of 10.47%. This indicates that the company was more successful in utilizing equity to generate profits for shareholders in 2019 compared to 2023.

In conclusion, Oge Energy Corp.'s ROE has shown mixed results over the past five years, with a notable decrease in 2023 compared to the previous years. The company may need to focus on improving its profitability and operational efficiency to enhance its return on equity in the future.