PPL Corporation (PPL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 740,000 | 756,000 | -1,480,000 | 1,469,000 | 1,746,000 |
| Total stockholders’ equity | US$ in thousands | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 | 12,991,000 |
| ROE | 5.31% | 5.43% | -10.78% | 10.98% | 13.44% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $740,000K ÷ $13,933,000K
= 5.31%
PPL Corp's return on equity (ROE) has displayed fluctuating trends over the past five years, as evidenced by the data provided. The ROE decreased from 13.43% in 2019 to 10.98% in 2020, then experienced a significant decline to -10.78% in 2021 before rebounding to 5.43% in 2022 and further to 5.30% in 2023.
The negative ROE in 2021 is a concerning sign as it indicates that the company's net income was insufficient to cover shareholder equity, potentially signaling financial distress or operational challenges during that period. The subsequent recovery in 2022 and 2023 suggests some improvement in profitability and efficiency in utilizing shareholder equity.
Overall, the fluctuating ROE of PPL Corp indicates a degree of volatility in its financial performance and efficiency in generating profits from shareholders' investments. Further analysis of the company's management strategies, financial health, and market conditions may provide additional insights into the factors influencing its ROE trajectory.
Peer comparison
Dec 31, 2023