Sempra Energy (SRE)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,075,000 | 2,776,000 | 2,540,000 | 2,496,000 | 2,139,000 | 2,305,000 | 1,172,000 | 1,046,000 | 1,318,000 | 1,117,000 | 2,105,000 | 3,899,000 | 3,764,000 | 3,797,000 | 4,259,000 | 2,374,000 | 2,055,000 | 2,472,000 | 1,933,000 | 1,018,000 |
| Total stockholders’ equity | US$ in thousands | 28,675,000 | 28,238,000 | 27,836,000 | 27,667,000 | 27,115,000 | 27,030,000 | 26,841,000 | 26,114,000 | 25,981,000 | 24,554,000 | 25,451,000 | 23,999,000 | 23,373,000 | 23,228,000 | 23,606,000 | 20,117,000 | 19,929,000 | 18,620,000 | 17,440,000 | 17,346,000 |
| ROE | 10.72% | 9.83% | 9.12% | 9.02% | 7.89% | 8.53% | 4.37% | 4.01% | 5.07% | 4.55% | 8.27% | 16.25% | 16.10% | 16.35% | 18.04% | 11.80% | 10.31% | 13.28% | 11.08% | 5.87% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,075,000K ÷ $28,675,000K
= 10.72%
Sempra's Return on Equity (ROE) has shown a positive trend over the past eight quarters. The ROE increased from 7.72% in Q4 2022 to 10.57% in Q4 2023, indicating an improvement in the company's profitability and efficiency in generating returns for its shareholders. The upward trend in ROE is a positive sign of management's ability to effectively utilize equity capital to generate profits.
The quarterly ROEs fluctuated between 3.80% and 10.57%, with the highest and lowest values recorded in Q4 2023 and Q1 2022, respectively. This variability may be influenced by factors such as changes in revenue, expenses, and debt levels. Overall, the company's ROE performance demonstrates a generally positive trajectory, with ROE consistently staying above 7% in the most recent quarters.
Investors and stakeholders typically view a higher ROE favorably as it indicates that the company is efficiently using shareholders' equity to generate profits. Sempra's improving ROE over the quarters suggests that the company is effectively managing its assets and liabilities to enhance shareholder value. However, it is essential for investors to consider other financial metrics and factors in conjunction with ROE analysis to gain a comprehensive understanding of Sempra's financial performance.
Peer comparison
Dec 31, 2023