WEC Energy Group Inc (WEC)

Return on equity (ROE)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands 1,332,900 1,409,300 1,301,500 1,201,100 1,135,200
Total stockholders’ equity US$ in thousands 11,754,600 11,407,300 10,943,600 10,500,100 10,143,800
ROE 11.34% 12.35% 11.89% 11.44% 11.19%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,332,900K ÷ $11,754,600K
= 11.34%

To analyze WEC Energy Group Inc's Return on Equity (ROE) over the past five years, we observe a steady trend with fluctuations within a relatively narrow range. ROE indicates the profitability of a company by measuring how efficiently it generates profit from shareholders' equity.

In 2019, WEC Energy Group Inc's ROE was 11.18%, showing a decent performance. Subsequently, there was a slight improvement in 2020 to 11.43%, followed by another increase to 11.88% in 2021. The ROE peaked in 2022 at 12.34%, indicating a temporary boost in profitability, before declining slightly to 11.33% in 2023.

Overall, WEC Energy Group Inc has maintained a consistent ROE above 11% over the years, reflecting sound management of shareholder equity and profitability. However, a persistent downward trend in recent years might warrant further investigation into the company's operational efficiency and potential strategies for sustaining or enhancing ROE in the future.