Williams Companies Inc (WMB)
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 | 3,179,000 | 2,710,000 | 2,656,000 | 2,596,000 | 2,049,000 | 2,002,000 | 1,567,000 | 1,471,000 | 1,517,000 | 1,011,000 | 1,155,000 | 1,154,000 | 211,000 | 219,000 | 131,000 | 138,000 | 850,000 | 155,000 | 63,000 | -112,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,845,000 | 11,679,000 | 11,785,000 | 11,485,000 | 11,319,000 | 11,226,000 | 11,316,000 | 11,423,000 | 11,198,000 | 11,512,000 | 11,702,000 | 11,769,000 | 12,065,000 | 12,212,000 | 12,354,000 | 13,363,000 | 13,621,000 | 13,848,000 | 14,406,000 |
| ROE | 25.63% | 22.88% | 22.74% | 22.03% | 17.84% | 17.69% | 13.96% | 13.00% | 13.28% | 9.03% | 10.03% | 9.86% | 1.79% | 1.82% | 1.07% | 1.12% | 6.36% | 1.14% | 0.45% | -0.78% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,179,000K ÷ $12,402,000K
= 25.63%
Williams Cos Inc's return on equity (ROE) has shown a generally positive trend over the last eight quarters, increasing from 12.97% in Q1 2022 to 25.61% in Q4 2023. This improvement indicates the company's ability to generate higher profits from shareholders' equity over time. The consistent upward trajectory suggests effective management of resources and increased efficiency in utilizing funds to generate earnings.
The ROE exceeding 20% in the past few quarters indicates that Williams Cos Inc is efficiently utilizing its shareholders' equity to generate returns above the cost of equity capital. This signifies a strong performance in terms of profitability and effectiveness in utilizing resources to create value for the company and its shareholders.
Overall, the increasing trend in Williams Cos Inc's ROE signifies a positive performance in terms of generating profits relative to the shareholders' equity invested in the company. However, it is important to continue monitoring ROE performance in future periods to ensure sustained profitability and efficient use of shareholders' equity.
Peer comparison
Dec 31, 2023