APA Corporation (APA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.18% | 51.06% | 56.48% | 44.33% | 20.41% |
| Operating profit margin | 32.85% | 40.56% | 45.89% | 33.71% | 3.90% |
| Pretax margin | 15.76% | 34.82% | 51.77% | 23.68% | -109.13% |
| Net profit margin | 8.26% | 34.48% | 33.17% | 12.19% | -109.58% |
The gross profit margin of APA Corporation has shown a significant improvement over the years, increasing from 20.41% in December 2020 to 56.48% in December 2022. However, there was a slight decrease in 2024 to 44.18%. This indicates that the company has been able to effectively control its cost of goods sold and increase its profitability from sales.
The operating profit margin of APA Corporation has also displayed a positive trend, with a notable increase from 3.90% in December 2020 to 45.89% in December 2022. Although there was a slight decline in 2024 to 32.85%, the overall trend shows that the company has been successful in managing its operating expenses to generate higher profits.
The pretax margin of APA Corporation has shown a remarkable improvement over the years, rising from -109.13% in December 2020 to 51.77% in December 2022. There was a decrease in 2024 to 15.76%, indicating that the company's pre-tax earnings relative to its total revenue have been improving significantly.
The net profit margin of APA Corporation has fluctuated over the years, ranging from -109.58% in December 2020 to 34.48% in December 2023. However, there was a considerable decrease in 2024 to 8.26%. This suggests that while the company has been able to generate profits from its operations, it may need to focus on controlling expenses to improve its bottom line profitability.
Overall, APA Corporation has shown positive trends in its profitability ratios, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin. However, the fluctuations in certain years indicate the need for continued monitoring and strategic management of costs and revenues to sustain and enhance profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.50% | 22.03% | 38.66% | 20.24% | 1.36% |
| Return on assets (ROA) | 4.15% | 18.73% | 27.95% | 7.31% | -38.13% |
| Return on total capital | 36.14% | 120.90% | 1,431.68% | — | — |
| Return on equity (ROE) | 15.23% | 107.53% | 868.56% | — | — |
Based on the provided data, APA Corporation's profitability ratios exhibit significant fluctuations over the years:
1. Operating return on assets (Operating ROA) has seen a notable increase from 1.36% in 2020 to a peak of 38.66% in 2022, before decreasing to 16.50% in 2024. This indicates that the company's operating income generated from its assets has been improving, although it experienced some fluctuations.
2. Return on assets (ROA) shows a volatile trend, starting from a negative figure of -38.13% in 2020, then recovering to 27.95% in 2022, and finally declining to 4.15% in 2024. This suggests that the company has struggled with asset utilization efficiency and profitability, despite some improvements over the years.
3. Return on total capital was not available for 2020 and 2021, but saw a substantial spike to 1,431.68% in 2022, before decreasing to 36.14% in 2024. This ratio indicates the company's ability to generate profits from its total invested capital, which experienced significant fluctuations.
4. Return on equity (ROE) data was missing for 2020 and 2021, but showed a remarkable increase to 868.56% in 2022, followed by a decline to 15.23% in 2024. ROE reflects the company's ability to generate profits for its shareholders from their investments and indicates a volatile performance over the years.
In conclusion, APA Corporation's profitability ratios have shown variability and mixed performance, with some ratios improving while others fluctuated or declined. Further analysis and context would be necessary to understand the underlying reasons for these fluctuations and their implications for the company's financial health and performance.