APA Corporation (APA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -10.09% | 67.61% | -12.49% | -14.97% | 39.57% |
| Operating profit margin | 43.47% | 299.89% | 36.17% | -95.22% | -32.84% |
| Pretax margin | 26.72% | 276.84% | 20.54% | -111.33% | -43.93% |
| Net profit margin | 30.51% | 188.69% | 13.30% | -112.81% | -54.22% |
APA Corporation's profitability ratios show a mixed performance over the past five years. The gross profit margin has remained consistently strong at 100%, indicating efficient cost control and pricing strategies.
The operating profit margin has fluctuated, with a peak in 2022 at 45.58% but a decrease to 42.06% in 2023. This suggests some variability in the company's ability to generate profits from its core operations.
The pretax margin also shows significant fluctuations, with a sharp decline to -107.58% in 2020 before recovering to 34.75% in 2023. This indicates that APA Corporation's profitability before taxes has been volatile, possibly due to one-time charges or fluctuations in operating income.
Meanwhile, the net profit margin has shown improvement in recent years, reaching 34.41% in 2023. However, the negative margins in 2020 and 2019 indicate periods of financial losses or challenges.
Overall, while APA Corporation demonstrates a strong gross profit margin and some improvement in net profit margin, there are fluctuations in operating and pretax margins that warrant further investigation into the company's operational efficiency and cost management strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.24% | 39.42% | 20.07% | -32.18% | -11.88% |
| Return on assets (ROA) | 14.91% | 24.81% | 7.38% | -38.13% | -19.62% |
| Return on total capital | 76.06% | 78.68% | 43.25% | -57.52% | -18.22% |
| Return on equity (ROE) | 53.38% | 156.60% | — | — | -109.16% |
APA Corporation's profitability ratios show a mixed performance over the past five years.
Starting with the Operating Return on Assets (Operating ROA), the company's efficiency in generating operating profits from its assets has fluctuated. In 2022, APA Corporation achieved a high Operating ROA of 38.91%, indicating strong operational performance. However, this decreased to 22.89% in 2023, which is still a healthy level but a decline from the previous year.
Looking at the Return on Assets (ROA), which includes all income generated by the assets, APA Corporation has shown a similar pattern. The company's ROA improved significantly from 2019 to 2022, reaching a peak of 27.95%. However, there was a decrease in 2023 to 18.73%, suggesting a slight drop in overall asset efficiency.
The Return on Total Capital reflects the return generated by all sources of capital, including debt and equity. APA Corporation's performance in this ratio has been volatile, with a notable high of 87.07% in 2022 and a substantial decrease to 45.76% in 2023. This indicates fluctuations in the company's ability to generate returns on the total funds invested in its operations.
Lastly, the Return on Equity (ROE) metric demonstrates APA Corporation's profitability in relation to shareholders' equity. The ROE figures display significant fluctuations over the years, with a remarkable ROE of 868.56% in 2022 but a drastic decline to 107.53% in 2023. It is important to note the negative ROE values in 2019 and 2020, which suggest that the company experienced losses relative to shareholders' equity during those years.
In summary, while APA Corporation has shown strong profitability in certain years, the fluctuating trends in these ratios indicate a degree of inconsistency in the company's financial performance over the past five years. Further analysis and monitoring of these ratios would be beneficial for understanding the factors influencing APA Corporation's profitability.