Southwest Gas Holdings Inc (SWX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 150,889 | -203,290 | 200,779 | 232,324 | 213,936 |
| Total stockholders’ equity | US$ in thousands | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 | 2,505,910 |
| ROE | 4.56% | -6.65% | 6.80% | 8.69% | 8.54% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $150,889K ÷ $3,310,040K
= 4.56%
Southwest Gas Holdings Inc's return on equity (ROE) has experienced fluctuation over the past five years. In 2023, the ROE stood at 4.56%, indicating a moderate return on equity for that year.
The negative ROE of -6.65% in 2022 signifies that the company incurred a loss compared to the equity invested by shareholders, which could be a matter of concern. However, the return on equity improved significantly in 2021 to 6.80%, indicating a better utilization of shareholder equity to generate profits.
In 2020 and 2019, the ROE was relatively stable at 8.69% and 8.54%, respectively. This shows that the company was able to consistently generate decent returns for shareholders during those years.
The fluctuations in ROE over the years could be due to various factors such as changes in the company's profitability, level of debt, or efficiency in using shareholder equity. It is essential for investors and stakeholders to closely monitor these trends to assess the company's performance and financial health.
Peer comparison
Dec 31, 2023