Southwest Gas (De)(Swx) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for SWX compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2021', SWX's return on equity was 6.8%, measuring profitability for shareholders. Industry average for Oil & Gas Production in '2021' stood at 20.8%.
• In '2022', SWX's return on equity was -6.8%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2022' stood at 42.4%. Industry average increased by 21.7% compared to previous year.
• In '2023', SWX's return on equity was 4.7%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2023' stood at 32.9%. Industry average declined by 9.5% from previous year.
• In '2024', SWX's return on equity was 5.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2024' stood at 28.3%. Industry average declined by 4.6% from previous year.
Overall, SWX's return on equity has been volatile but generally stable over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.