Williams Companies Inc (WMB)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,179,000 | 2,049,000 | 1,517,000 | 211,000 | 850,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 | 13,363,000 |
| ROE | 25.63% | 17.84% | 13.28% | 1.79% | 6.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,179,000K ÷ $12,402,000K
= 25.63%
Williams Cos Inc has shown an improvement in return on equity (ROE) over the past five years. The ROE has steadily increased from 6.34% in 2019 to 25.61% in 2023, indicating the company's ability to generate higher profits relative to shareholders' equity invested. This trend suggests that Williams Cos Inc is becoming more efficient in utilizing its equity to generate earnings. The significant increase in ROE between 2022 and 2023 demonstrates a notable improvement in the company's profitability and efficiency in utilizing shareholder funds. Overall, the increasing trend in ROE reflects positively on Williams Cos Inc's financial performance and management's ability to create value for shareholders.
Peer comparison
Dec 31, 2023