Public Service Enterprise Group Inc (PEG)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,772,000	2,563,000	1,031,000	-648,000	1,905,000
Total stockholders’ equity	US$ in thousands	14,711,000	14,098,000	12,352,000	13,542,000	15,123,000
ROE		12.05%	18.18%	8.35%	-4.79%	12.60%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,772,000K ÷ $14,711,000K
= 12.05%

Public Service Enterprise Group Inc's return on equity (ROE) has shown fluctuating trends over the past five years.

In December 2020, the ROE stood at 12.60%, indicating that the company generated a return of 12.60% on the equity invested. This was a positive sign, reflecting efficient utilization of shareholder funds.

However, there was a significant decline in the ROE by the end of 2021, dropping to -4.79%. A negative ROE suggests that the company incurred a net loss relative to shareholder equity, which could be a concerning factor for investors.

By December 2022, the ROE improved to 8.35%, showing a partial recovery from the previous year's downturn. This indicates that the company achieved a better return on equity compared to the previous year.

The trend continued upward in 2023, with the ROE reaching 18.18%, representing a substantial improvement in profitability and efficiency in utilizing shareholder funds.

In the latest data available for December 2024, the ROE slightly decreased to 12.05% from the peak in 2023 but remained at a relatively healthy level, indicating continued effective management of the company's assets to generate profits for shareholders.

Overall, the fluctuating ROE of Public Service Enterprise Group Inc reflects varying levels of financial performance and efficiency in generating returns for shareholders over the past five years. Investors and stakeholders may want to monitor future ROE figures to assess the company's financial strength and profitability.