Essential Utilities Inc (WTRG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 498,226 | 465,237 | 431,612 | 284,849 | 224,543 |
| Total stockholders’ equity | US$ in thousands | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 | 3,880,860 |
| ROE | 8.45% | 8.65% | 8.33% | 6.08% | 5.79% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $498,226K ÷ $5,896,180K
= 8.45%
Essential Utilities Inc has shown a consistent improvement in its return on equity (ROE) over the past five years. The ROE increased from 5.79% in 2019 to 8.45% in 2023, indicating a positive trend in the company's ability to generate profit relative to shareholders' equity.
This upward trajectory suggests that Essential Utilities Inc has been effectively utilizing its equity to generate earnings for its shareholders. The company's ROE exceeding 8% in the latest two years is a positive sign of strong financial performance and efficient management of assets to generate profits.
Overall, the increasing trend in ROE reflects positively on Essential Utilities Inc's financial health and operational efficiency, signaling a promising outlook for shareholders and potential investors.
Peer comparison
Dec 31, 2023