PG&E Corp (PCG)
Return on equity (ROE)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 2,256,000 | 1,814,000 | -88,000 | -1,304,000 | -7,642,000 |
Total stockholders’ equity | US$ in thousands | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 | 5,136,000 |
ROE | 9.01% | 7.95% | -0.42% | -6.21% | -148.79% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,256,000K ÷ $25,040,000K
= 9.01%
PG&E Corp.'s return on equity (ROE) has shown varying trends over the past five years. The company's ROE improved from -149.07% in 2019 to -6.28% in 2020, indicating a positive turnaround in profitability. Subsequently, there was further improvement with ROE increasing to -0.49% in 2021 and 7.89% in 2022, suggesting a gradual recovery in the company's profitability.
In the most recent period, as of December 31, 2023, PG&E Corp.'s ROE stood at 8.95%, continuing the positive trend observed in the previous years. This increase in ROE can be seen as a favorable indicator of improved efficiency in generating profits relative to shareholders' equity. However, it is essential to note that the ROE of 8.95% in 2023 still remains relatively modest and may warrant further monitoring and analysis to assess the sustainability of this profitability level.
Overall, the trend in PG&E Corp.'s ROE over the five-year period indicates a trajectory of recovery and improvement in the company's financial performance, albeit with fluctuations. Future analysis should consider the underlying factors contributing to these changes in ROE to provide a more comprehensive understanding of the company's financial health and profitability.
Peer comparison
Dec 31, 2023