Public Service Enterprise Group Inc (PEG)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,563,000	1,031,000	-648,000	1,905,000	1,693,000
Total stockholders’ equity	US$ in thousands	14,098,000	12,352,000	13,542,000	15,123,000	14,258,000
ROE		18.18%	8.35%	-4.79%	12.60%	11.87%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,563,000K ÷ $14,098,000K
= 18.18%

Public Service Enterprise Group Inc.'s return on equity (ROE) has exhibited variability over the past five years. In 2023, the ROE increased significantly to 16.56%, marking a notable improvement from the previous year's ROE of 7.51%. This increase indicates that the company generated a higher level of profits relative to its shareholders' equity, reflecting improved operational efficiency and effective utilization of capital.

In contrast, the ROE was negative in 2021 at -4.49%, suggesting that the company incurred losses that year in relation to its equity base. However, Public Service Enterprise Group Inc. managed to rebound in 2022 and 2023, surpassing the ROE levels seen in 2020 and 2019.

Overall, the upward trend in ROE from 2020 to 2023 signifies the company's efforts to enhance profitability and create more value for its shareholders. The positive ROE figures indicate that Public Service Enterprise Group Inc. has been successful in generating returns on the capital invested by its shareholders, demonstrating financial stability and effective management of resources.