Portland General Electric Co (POR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 228,000 | 233,000 | 244,000 | 155,000 | 214,000 |
| Total stockholders’ equity | US$ in thousands | 3,319,000 | 2,779,000 | 2,707,000 | 2,613,000 | 2,591,000 |
| ROE | 6.87% | 8.38% | 9.01% | 5.93% | 8.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $228,000K ÷ $3,319,000K
= 6.87%
Portland General Electric Co's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE stands at 6.87%, showing a decrease from 8.38% in 2022 and a continuation of a downward trend since 2021. The 2021 ROE was 9.01%, which was an increase from the previous year's 5.93%. However, in 2019, the ROE was 8.26%, which was higher compared to 2020.
The trend in ROE indicates some inconsistency in the company's ability to generate profits relative to its shareholders' equity over the years. The lower ROE in 2023 could be a cause for concern as it suggests a reduced efficiency in utilizing equity to generate profits compared to previous years. Further analysis into the company's financial performance, profitability drivers, and potential factors affecting ROE is recommended to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023