APA Corporation (APA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,526,000 | 3,536,000 | 1,062,000 | -4,860,000 | -3,553,000 |
| Total stockholders’ equity | US$ in thousands | 4,732,000 | 2,258,000 | -618,000 | -1,639,000 | 3,255,000 |
| ROE | 53.38% | 156.60% | — | — | -109.16% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,526,000K ÷ $4,732,000K
= 53.38%
APA Corporation's return on equity (ROE) has exhibited significant volatility over the past five years. In 2019, the company reported a negative ROE of -109.16%, indicating that its net income was insufficient to cover shareholder equity. However, there was a remarkable improvement in 2020, with the ROE climbing to 107.53%, reflecting a positive turnaround in profitability and efficient use of equity.
The ROE surged to an exceptionally high level of 868.56% in 2022, signifying a substantial increase in profitability and strong shareholder value creation. However, the lack of ROE data for 2021 leaves a gap in the analysis, making it challenging to assess the company's performance continuity.
Overall, despite the erratic fluctuations in the ROE in recent years, the substantial improvements in profitability and shareholder value in 2020 and 2022 suggest that APA Corporation has the potential to generate strong returns on equity when effectively managing its assets and liabilities.
Peer comparison
Dec 31, 2023