Williams Companies Inc (WMB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,225,000 | 3,179,000 | 2,049,000 | 1,517,000 | 211,000 |
| Total stockholders’ equity | US$ in thousands | 12,436,000 | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 |
| ROE | 17.89% | 25.63% | 17.84% | 13.28% | 1.79% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,225,000K ÷ $12,436,000K
= 17.89%
Based on the data provided for Williams Companies Inc, the return on equity (ROE) has shown an improving trend over the years.
As of December 31, 2020, the ROE was relatively low at 1.79%, indicating that the company's ability to generate profit from shareholders' equity was limited. However, by December 31, 2021, the ROE had increased significantly to 13.28%, reflecting a more efficient use of equity to generate earnings.
This positive trend continued in the following years, with the ROE reaching 17.84% by December 31, 2022, and further improving to 25.63% by December 31, 2023. These higher ROE figures suggest that Williams Companies Inc was utilizing its equity more effectively to generate returns for its shareholders during these periods.
Although there was a slight decrease in ROE to 17.89% by December 31, 2024, it still remained at a relatively high level compared to the starting point in 2020, indicating overall strong performance in terms of profitability relative to shareholders' equity.
In conclusion, the trend in Williams Companies Inc's ROE indicates an improvement in the company's ability to generate profits from shareholders' equity over the years, suggesting good financial health and efficient use of resources.
Peer comparison
Dec 31, 2024