Public Service Enterprise Group Inc (PEG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,563,000	1,031,000	-648,000	1,905,000	1,693,000
Total assets	US$ in thousands	50,741,000	48,718,000	48,999,000	50,050,000	47,730,000
ROA		5.05%	2.12%	-1.32%	3.81%	3.55%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $2,563,000K ÷ $50,741,000K
= 5.05%

Public Service Enterprise Group Inc.'s return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA improved significantly to 5.05%, marking a notable increase from the prior year's 2.12%. This indicates that the company generated 5.05 cents of profit for every dollar of assets it holds. The positive trend in ROA is a favorable sign suggesting improved efficiency in asset utilization.

In contrast, in 2021, the company experienced a negative ROA of -1.32%, indicating that it incurred a loss in relation to its assets. However, the company managed to reverse this negative trend in the subsequent years.

Compared to the ROA of 2019 and 2020, where the values were 3.81% and 3.55% respectively, the recent ROA performance in 2023 is higher, reflecting a potentially stronger financial position and operational effectiveness.

Overall, the varying ROA figures highlight the company's ability to generate profits relative to its asset base, with the latest ROA figure indicating improved asset utilization and profitability in 2023.