APA Corporation (APA)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	804,000	2,855,000	3,674,000	973,000	-4,860,000
Revenue	US$ in thousands	9,737,000	8,279,000	11,075,000	7,985,000	4,435,000
Net profit margin		8.26%	34.48%	33.17%	12.19%	-109.58%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $804,000K ÷ $9,737,000K
= 8.26%

To analyze APA Corporation's net profit margin over the period from December 31, 2020, to December 31, 2024, we observe the following trends:

1. In December 2020, the net profit margin was negative at -109.58%. This indicates that the company's expenses exceeded its revenues, resulting in a loss.

2. By December 2021, the net profit margin improved significantly to 12.19%, signaling that the company was able to generate profit from its operations and effectively manage costs.

3. Continuing this positive trend, the net profit margin further increased to 33.17% by December 2022 and to 34.48% by December 2023. These consecutive improvements demonstrate the company's enhanced financial performance and profitability.

4. However, in December 2024, the net profit margin slightly declined to 8.26%. While still positive, this decrease may indicate factors such as increased expenses or a decrease in revenues that impacted the company's profitability.

Overall, APA Corporation has shown a notable improvement in its net profit margin from severe losses in 2020 to significantly positive margins in subsequent years, with a minor dip in 2024. The company's ability to maintain and further enhance profitability will be essential for its long-term financial sustainability and growth.