PPL Corporation (PPL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 888,000 | 740,000 | 756,000 | -1,480,000 | 1,469,000 |
| Total stockholders’ equity | US$ in thousands | 14,077,000 | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 |
| ROE | 6.31% | 5.31% | 5.43% | -10.78% | 10.98% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $888,000K ÷ $14,077,000K
= 6.31%
The return on equity (ROE) of PPL Corporation has displayed fluctuations over the past five years. As of December 31, 2020, the ROE stood at 10.98%, indicating a decent return generated for shareholders in that year. However, by December 31, 2021, the ROE declined sharply to -10.78%, suggesting a negative return for shareholders during that period.
Subsequently, there was a recovery in the ROE, with values of 5.43% as of December 31, 2022, 5.31% by December 31, 2023, and improving to 6.31% as of December 31, 2024. These figures demonstrate a trend of gradual improvement in generating returns relative to shareholders' equity over the last three years.
Overall, the fluctuating trend in ROE indicates varying levels of profitability and efficiency in the utilization of shareholders' equity by PPL Corporation during the specified period. The company may need to focus on sustaining or boosting ROE levels to ensure consistent and satisfactory returns for its shareholders in the future.
Peer comparison
Dec 31, 2024