PG&E Corp (PCG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,512,000 | 2,256,000 | 1,814,000 | -88,000 | -1,304,000 |
| Total stockholders’ equity | US$ in thousands | 30,149,000 | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 |
| ROE | 8.33% | 9.01% | 7.95% | -0.42% | -6.21% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,512,000K ÷ $30,149,000K
= 8.33%
PG&E Corp's return on equity (ROE) has shown a significant improvement over the analyzed period. ROE was negative in December 31, 2020, at -6.21%, indicating that the company was not effectively utilizing its equity to generate profit. However, by December 31, 2024, ROE had improved to 8.33%, signaling a positive turnaround in the company's ability to generate profit from its shareholders' equity. This upward trend suggests that PG&E Corp has become more efficient in using its equity to drive profitability and create value for its shareholders. Further analysis of the company's financial performance and management strategies would be beneficial to understand the factors contributing to this improvement in ROE.
Peer comparison
Dec 31, 2024