APA Corporation (APA)

Return on equity (ROE)

		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
Total stockholders’ equity	US$ in thousands	5,280,000	2,655,000	423,000	-1,595,000	-1,639,000
ROE		15.23%	107.53%	868.56%	—	—

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $804,000K ÷ $5,280,000K
= 15.23%

APA Corporation's return on equity (ROE) has shown significant fluctuations over the years. In 2020 and 2021, the ROE was not reported (\u2014), which could indicate potential challenges or changes in the company's financial performance during that period. However, in 2022, the ROE spiked to an impressive 868.56%, reflecting a substantial surge in profitability relative to shareholder equity.

The following year, in 2023, the ROE remained high at 107.53%, demonstrating continued strong performance in generating profits from the shareholders' investments. However, by 2024, the ROE had decreased to 15.23%, indicating a significant drop in profitability compared to the previous two years.

Overall, while APA Corporation experienced a remarkable increase in ROE in 2022 and 2023, the sharp decline in 2024 suggests a potential change in the company's profitability or efficiency in utilizing shareholder equity to generate returns. It would be essential to further investigate the reasons behind these fluctuations to understand the company's financial performance dynamics.