Essential Utilities Inc (WTRG)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	595,314	546,007	556,681	572,564	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
Total stockholders’ equity	US$ in thousands	6,198,810	6,180,930	6,163,230	6,081,130	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
ROE		9.60%	8.83%	9.03%	9.42%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $595,314K ÷ $6,198,810K
= 9.60%

Essential Utilities Inc's return on equity (ROE) has shown a general increasing trend over the periods provided in the data. Starting at 5.62% in March 2020, the ROE increased steadily to reach 9.60% by December 2024. This indicates that the company has been effectively utilizing its equity to generate profit for shareholders.

The fluctuations in ROE seem to be within a relatively narrow range, with some quarters showing slight decreases while others demonstrate modest increases. Overall, the increasing trend suggests that Essential Utilities Inc has been improving its profitability and efficiency in generating returns for its shareholders over the years.

It is essential to monitor the ROE in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Essential Utilities Inc's financial performance and to assess its competitiveness and long-term sustainability in the market.