APA Corporation (APA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,599,000 | 3,786,000 | 4,076,000 | 5,054,000 | 5,620,000 | 5,268,000 | 4,764,000 | 3,771,000 | 2,888,000 | 2,275,000 | 1,659,000 | 796,000 | -4,102,000 | -7,180,000 | -7,204,000 | -6,887,000 | -2,174,000 | 515,000 | 1,031,000 | 1,642,000 |
| Total assets | US$ in thousands | 16,944,000 | 14,799,000 | 14,572,000 | 14,259,000 | 14,255,000 | 14,192,000 | 13,839,000 | 13,494,000 | 14,393,000 | 14,426,000 | 14,388,000 | 13,975,000 | 12,746,000 | 12,875,000 | 12,999,000 | 13,391,000 | 18,107,000 | 21,405,000 | 21,806,000 | 21,751,000 |
| Operating ROA | 21.24% | 25.58% | 27.97% | 35.44% | 39.42% | 37.12% | 34.42% | 27.95% | 20.07% | 15.77% | 11.53% | 5.70% | -32.18% | -55.77% | -55.42% | -51.43% | -12.01% | 2.41% | 4.73% | 7.55% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,599,000K ÷ $16,944,000K
= 21.24%
APA Corporation's operating return on assets (operating ROA) has shown a decreasing trend over the past eight quarters. The operating ROA decreased from 30.11% in Q1 2022 to 22.89% in Q4 2023. This decline in operating ROA indicates that the company's ability to generate operating profits from its assets has weakened over time.
The peak operating ROA of 39.47% was achieved in Q3 2022, but since then it has been on a downward trajectory. This suggests that the company may be facing challenges in efficiently utilizing its assets to generate operating income.
The decreasing trend in operating ROA may be a cause for concern as it indicates a potential decline in operational efficiency and profitability. Further analysis of the company's operations and asset utilization is recommended to identify the underlying reasons for this downward trend and to implement strategies to improve operating ROA in the future.
Peer comparison
Dec 31, 2023