Antero Midstream Partners LP (AM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.09% | 65.92% | 65.57% | 66.97% | -11.03% |
| Operating profit margin | 59.59% | 58.73% | 58.64% | 61.83% | -13.06% |
| Pretax margin | 49.60% | 48.00% | 48.23% | 49.96% | -19.79% |
| Net profit margin | 36.24% | 35.69% | 35.46% | 36.92% | -13.60% |
Antero Midstream Partners LP has shown a significant improvement in its profitability ratios over the years. The gross profit margin increased from -11.03% in December 2020 to 66.09% in December 2024, indicating the company's ability to effectively manage its production costs and generate higher profits on sales.
Similarly, the operating profit margin also exhibited a positive trend, rising from -13.06% in December 2020 to 59.59% in December 2024. This indicates that the company has been able to control its operating expenses and improve operational efficiency.
The pretax margin, which reflects the company's profitability before accounting for taxes, increased from -19.79% in December 2020 to 49.60% in December 2024. This demonstrates the company's ability to generate profits from its core business activities.
The net profit margin, a key indicator of overall profitability, improved from -13.60% in December 2020 to 36.24% in December 2024. This indicates that after accounting for all expenses, including taxes, Antero Midstream Partners LP was able to retain a higher percentage of its revenue as net income.
Overall, the increasing profitability margins reflect the company's effective cost management, operational efficiency, and ability to generate higher profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.44% | 10.66% | 9.32% | 10.02% | -2.10% |
| Return on assets (ROA) | 6.96% | 6.48% | 5.63% | 5.98% | -2.18% |
| Return on total capital | 12.60% | 11.40% | 9.71% | 10.27% | -2.14% |
| Return on equity (ROE) | 18.95% | 17.28% | 14.88% | 14.50% | -5.07% |
Based on the provided data, we can observe the following trends in Antero Midstream Partners LP profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows the company's operating income generated per dollar of assets. Antero Midstream Partners LP's Operating ROA has improved significantly over the years, from a negative figure of -2.10% in 2020 to a positive 11.44% in 2024. This indicates that the company has been able to more effectively utilize its assets to generate operating profits.
2. Return on Assets (ROA):
- ROA measures the overall profitability of the company by expressing its net income as a percentage of total assets. Antero Midstream Partners LP's ROA also displays a positive trend, increasing from -2.18% in 2020 to 6.96% in 2024. This indicates that the company has been able to generate more profits from its total assets over the years.
3. Return on Total Capital:
- This ratio shows the return generated from all capital invested in the company, including both debt and equity. Antero Midstream Partners LP's Return on Total Capital has consistently increased from -2.14% in 2020 to 12.60% in 2024. This suggests that the company has been able to deliver higher returns to its providers of capital.
4. Return on Equity (ROE):
- ROE indicates how efficiently the company is using shareholders' equity to generate profits. Antero Midstream Partners LP's ROE has shown remarkable improvement, rising from -5.07% in 2020 to 18.95% in 2024. This signifies that the company has been able to deliver higher returns to its equity investors over the years.
Overall, the profitability ratios of Antero Midstream Partners LP demonstrate a positive trend, indicating improving efficiency in asset utilization, profitability, and capital returns. These trends suggest that the company has been effectively managing its resources to enhance profitability and create value for its stakeholders.