Essential Utilities Inc (WTRG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 595,314 | 498,226 | 465,237 | 431,612 | 284,849 |
| Total stockholders’ equity | US$ in thousands | 6,198,810 | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 |
| ROE | 9.60% | 8.45% | 8.65% | 8.33% | 6.08% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $595,314K ÷ $6,198,810K
= 9.60%
Essential Utilities Inc's return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 6.08% as of December 31, 2020, to 9.60% as of December 31, 2024. This indicates the company has been effectively utilizing its equity to generate profits for shareholders. The consistent improvement in ROE demonstrates the company's ability to efficiently allocate capital and manage its operations to maximize shareholder value. Overall, Essential Utilities Inc's increasing ROE reflects positively on its financial performance and efficiency.
Peer comparison
Dec 31, 2024
Company name
Symbol
ROE
Essential Utilities Inc
WTRG
9.60%
American States Water Company
AWR
12.96%
American Water Works
AWK
10.17%
California Water Service Group
CWT
11.65%
Middlesex Water Company
MSEX
9.96%
SJW Group Common Stock
SJW
6.87%