Southwest Gas Holdings Inc (SWX)
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 | 150,889 | -202,564 | -218,104 | -253,557 | -203,290 | 147,237 | 147,970 | 179,664 | 200,779 | 234,380 | 264,229 | 277,075 | 232,324 | 220,498 | 207,578 | 191,669 | 213,936 | 191,522 | 198,500 | 197,995 |
| Total stockholders’ equity | US$ in thousands | 3,310,040 | 3,238,740 | 3,262,830 | 3,296,160 | 3,058,760 | 3,412,920 | 3,458,850 | 3,489,080 | 2,953,820 | 2,909,820 | 2,846,880 | 2,773,720 | 2,674,950 | 2,619,240 | 2,611,300 | 2,547,900 | 2,505,910 | 2,423,710 | 2,419,360 | 2,347,000 |
| ROE | 4.56% | -6.25% | -6.68% | -7.69% | -6.65% | 4.31% | 4.28% | 5.15% | 6.80% | 8.05% | 9.28% | 9.99% | 8.69% | 8.42% | 7.95% | 7.52% | 8.54% | 7.90% | 8.20% | 8.44% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $150,889K ÷ $3,310,040K
= 4.56%
Southwest Gas Holdings Inc's return on equity (ROE) has exhibited fluctuating trends over the past eight quarters. In Q4 2023, the ROE stood at 4.56%, indicating a modest return on the shareholders' equity. However, in the preceding quarter, Q3 2023, the company experienced a negative ROE of -6.25%, reflecting a loss relative to the equity invested. This negative trend continued in the following quarter with ROEs of -6.68% in Q2 2023 and -7.69% in Q1 2023.
Comparing the recent performance with the same periods in the prior year, it is evident that there has been a deterioration in Southwest Gas Holdings Inc's ROE. In Q4 2022, the ROE was at a similar negative level of -6.65%, but prior to that, the company had achieved positive ROE figures, including 4.31% in Q3 2022, 4.28% in Q2 2022, and 5.15% in Q1 2022.
Overall, the recent negative ROE figures signify challenges in generating profits relative to the equity capital invested in the company. This trend warrants further investigation into the factors impacting Southwest Gas Holdings Inc's profitability and the utilization of shareholder equity.
Peer comparison
Dec 31, 2023