PG&E Corp (PCG)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 2,512,000 | 2,761,000 | 2,533,000 | 2,419,000 | 2,256,000 | 1,850,000 | 1,958,000 | 1,908,000 | 1,814,000 | 1,773,000 | 226,000 | 267,000 | -88,000 | -360,000 | 814,000 | -1,555,000 | -1,304,000 | -5,121,000 | -6,823,000 | -7,404,000 |
| Total stockholders’ equity | US$ in thousands | 30,149,000 | 26,834,000 | 26,253,000 | 25,731,000 | 25,040,000 | 24,132,000 | 23,763,000 | 23,334,000 | 22,823,000 | 22,234,000 | 21,767,000 | 21,392,000 | 20,971,000 | 20,475,000 | 21,547,000 | 21,127,000 | 21,001,000 | 20,812,000 | 3,549,000 | 5,507,000 |
| ROE | 8.33% | 10.29% | 9.65% | 9.40% | 9.01% | 7.67% | 8.24% | 8.18% | 7.95% | 7.97% | 1.04% | 1.25% | -0.42% | -1.76% | 3.78% | -7.36% | -6.21% | -24.61% | -192.25% | -134.45% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,512,000K ÷ $30,149,000K
= 8.33%
PG&E Corp's return on equity (ROE) exhibited substantial volatility over the analyzed period. The ROE was negative in the initial quarters, indicating that the company's net income was insufficient to cover shareholder equity, reflecting financial distress. However, a positive turnaround started in the second quarter of 2021, with ROE improving gradually until reaching a peak in the fourth quarter of 2024. This positive trend suggests that the company's profitability in relation to shareholders' equity improved significantly.
The significant increase in ROE from negative values to double-digit positive percentages indicates that PG&E Corp enhanced its operational efficiency and profitability during the period under review. The improvement in ROE could signify better cost management, increased revenue generation, or more efficient use of assets.
Investors and stakeholders may view this positive trend in PG&E Corp's ROE favorably as it indicates the company's ability to generate higher profits from shareholder investments. However, it is essential to continue monitoring the ROE to ensure that the positive trend is sustained and that the company remains on track with its profitability and operational objectives.
Peer comparison
Dec 31, 2024