LNTNEUTRAL

Return on Equity (ROE)

11.3%

Higher than 70% of Utilities sector peers

Updated 342h ago

Sector Performance

70th percentile

LNT

11.3%

Sector Median

9.6%

Sector Avg

8.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders’ equity — a higher percentage means better use of invested capital.

Alliant Energy’s current ROE of 11.3% exceeds the Utilities sector median of 9.9%, placing it in the 73rd percentile among peers. However, the trend direction is not available, as year-over-year and quarter-over-quarter changes are both marked N/A, so no recent performance trajectory can be assessed. Without trend data, the above-median level alone suggests the company is performing well relative to its sector, but investors cannot gauge whether this strength is improving or slipping. This combination of a strong current level with unknown momentum implies moderate investment opportunity, tempered by uncertainty about sustainability. The elevated ROE supports the overall NEUTRAL verdict, providing evidence of above-average efficiency, but the absence of trend data prevents a stronger positive or negative stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LNT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does LNT's Return on Equity (ROE) compare to its sector?

LNT's Return on Equity (ROE) of 11.3% compares to a Utilities sector median of 9.6%, placing it in the 70th percentile.

Who are LNT's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), PCG (8.8%), ATO (8.8%), PPL (8.3%), AEE (10.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.