SJW Corporation (SJW)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	84,987	73,828	60,478	61,515	23,403
Total stockholders’ equity	US$ in thousands	1,233,400	1,110,870	1,034,520	917,160	889,984
ROE		6.89%	6.65%	5.85%	6.71%	2.63%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $84,987K ÷ $1,233,400K
= 6.89%

SJW Group's return on equity (ROE) has shown a gradual improvement over the past five years. In 2019, the ROE was at a relatively low level of 2.63%, indicating that the company's ability to generate profit from shareholders' equity was limited. However, there has been a steady upward trend in ROE since then, reaching 6.89% in 2023.

This improvement suggests that SJW Group has become more efficient in utilizing its shareholders' equity to generate earnings. A rising ROE can indicate effective management of assets and liabilities, as well as successful operational performance. It also indicates that the company is becoming more profitable for its shareholders.

Although the ROE values are positive, they are relatively moderate compared to industry benchmarks. SJW Group may consider implementing strategies to further enhance its profitability and efficiency in order to continue improving its return on equity and create more value for its investors.