Quanta Services Inc (PWR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 904,824 | 744,689 | 491,189 | 485,956 | 445,596 |
| Total stockholders’ equity | US$ in thousands | 7,317,730 | 6,272,240 | 5,383,460 | 5,112,300 | 4,344,180 |
| ROE | 12.36% | 11.87% | 9.12% | 9.51% | 10.26% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $904,824K ÷ $7,317,730K
= 12.36%
Quanta Services Inc's return on equity (ROE) has shown some fluctuations over the years. From December 31, 2020, to December 31, 2021, the ROE decreased from 10.26% to 9.51%. This may indicate a reduction in the company's ability to generate profit from shareholders' equity during that period.
However, there was a slight improvement in ROE from December 31, 2021, to December 31, 2022, as it increased to 9.12%. This could suggest that Quanta Services Inc took steps to enhance its profitability relative to shareholders' equity.
The trend reversed positively in the following years, with ROE reaching 11.87% by December 31, 2023, and further improving to 12.36% by December 31, 2024. These increases indicate a strengthening of the company's ability to generate profit from the shareholders' equity investment, reflecting positively on its overall financial performance.
Overall, the fluctuating trend of Quanta Services Inc's ROE highlights the company's varying efficiency in utilizing shareholders' equity to generate profits over the years, with recent improvements showing a positive trajectory in its financial performance.
Peer comparison
Dec 31, 2024