Sempra Energy (SRE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,075,000 | 2,139,000 | 1,318,000 | 3,764,000 | 2,055,000 |
| Total stockholders’ equity | US$ in thousands | 28,675,000 | 27,115,000 | 25,981,000 | 23,373,000 | 19,929,000 |
| ROE | 10.72% | 7.89% | 5.07% | 16.10% | 10.31% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,075,000K ÷ $28,675,000K
= 10.72%
The return on equity (ROE) of Sempra has fluctuated over the past five years. ROE measures the company's profitability by indicating how much profit the company generates with the shareholder's equity.
In 2023, Sempra's ROE was 10.57%, showing an increase from the previous year's ROE of 7.72%. Although the ROE improved in 2023, it is still lower than the ROE in 2020, where it reached 16.10%. This suggests that the company's profitability in 2023 was moderate compared to the previous years.
The ROE in 2021 was 4.83%, indicating a relatively low profitability level. However, there was a significant improvement in 2022, with the ROE rising to 7.72%. This improvement may indicate better utilization of equity to generate profits compared to the previous year.
Overall, Sempra's ROE has shown variability over the five-year period, with fluctuations in profitability levels. Investors and analysts may need to monitor future ROE trends to assess the company's ability to generate returns for its shareholders and evaluate the company's performance against its peers and industry standards.
Peer comparison
Dec 31, 2023