Essential Utilities Inc (WTRG)

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	498,226	477,710	466,272	457,295	465,237	466,811	448,676	447,299	431,612	417,813	423,042	416,757	284,849	246,369	279,126	259,400	224,543	156,659	146,386	158,073
Total stockholders’ equity	US$ in thousands	5,896,180	5,922,560	5,614,700	5,515,940	5,377,390	5,343,100	5,342,030	5,255,100	5,184,450	5,127,860	4,836,820	4,810,340	4,683,880	4,635,750	4,635,530	4,613,160	3,880,860	3,862,560	3,824,770	1,992,580
ROE		8.45%	8.07%	8.30%	8.29%	8.65%	8.74%	8.40%	8.51%	8.33%	8.15%	8.75%	8.66%	6.08%	5.31%	6.02%	5.62%	5.79%	4.06%	3.83%	7.93%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $498,226K ÷ $5,896,180K
= 8.45%

Essential Utilities Inc has demonstrated relatively stable return on equity (ROE) in the range of 8.07% to 8.74% over the past eight quarters. The ROE peaked at 8.74% in Q3 2022 and has since fluctuated within a narrow range. This indicates that the company is consistently generating a reasonable return for its shareholders relative to the equity invested in the business. However, it is important to note that the ROE figures are on the lower end of the spectrum compared to industry averages, suggesting potential opportunities for the company to improve its utilization of equity to generate higher returns for its shareholders. Overall, Essential Utilities Inc's ROE performance reflects stability but also room for enhancement.