Public Service Enterprise Group Inc (PEG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,685,000 | 1,381,000 | -856,000 | 2,270,000 | 1,943,000 |
| Total assets | US$ in thousands | 50,741,000 | 48,718,000 | 48,999,000 | 50,050,000 | 47,730,000 |
| Operating ROA | 7.26% | 2.83% | -1.75% | 4.54% | 4.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,685,000K ÷ $50,741,000K
= 7.26%
Public Service Enterprise Group Inc.'s operating return on assets (operating ROA) has shown fluctuating trends over the past five years. Starting at 4.91% in 2019, the operating ROA declined to 4.29% in 2020 before increasing slightly to 3.63% in 2021. The significant improvement was observed in 2022 when the operating ROA rose to 3.09%. However, in 2023, there was a notable jump in the operating ROA to 7.28%, indicating a substantial increase in the company's operating performance and efficiency in generating profits from its assets.
Overall, the upward trend in the operating ROA from 2020 to 2023 signals that Public Service Enterprise Group Inc. has been able to enhance its operational effectiveness and generate higher returns on its assets. This improvement could be attributed to various factors such as cost-cutting measures, operational efficiencies, or strategic investments that have positively impacted the company's profitability. However, it is essential for stakeholders to monitor the sustainability of this performance to ensure continued value creation for shareholders and investors.
Peer comparison
Dec 31, 2023