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