APA Corporation (APA)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	804,000	2,223,000	2,905,000	2,745,000	2,855,000	1,525,000	1,488,000	2,033,000	3,674,000	3,613,000	3,078,000	2,468,000	973,000	621,000	749,000	47,000	-4,821,000	-7,827,000	-8,012,000	-7,982,000
Total stockholders’ equity	US$ in thousands	5,280,000	5,114,000	5,423,000	2,607,000	2,655,000	1,078,000	709,000	444,000	423,000	600,000	584,000	-18,000	-1,595,000	-1,095,000	-964,000	-1,258,000	-1,639,000	-1,641,000	-1,635,000	-1,246,000
ROE		15.23%	43.47%	53.57%	105.29%	107.53%	141.47%	209.87%	457.88%	868.56%	602.17%	527.05%	—	—	—	—	—	—	—	—	—

December 31, 2024 calculation

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

ROE is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profit from its shareholders' equity. A higher ROE indicates a more efficient use of equity to generate profits.

Based on the provided data for APA Corporation, the ROE has shown significant fluctuations over the reporting periods. The ROE was not available for the fiscal year ending December 2022 and for the first half of 2023, indicating potential issues with profitability or fluctuating equity levels during that time.

Starting from the second half of 2023, the ROE began to increase rapidly, reaching a peak of 868.56% in December 2022. This sharp increase suggests that APA Corporation significantly improved its profitability and efficiency in generating returns for shareholders during these periods.

However, the ROE started to decline in the following periods, indicating a potential decrease in profitability or changes in the company's capital structure. Despite the decline, the ROE remained relatively high, indicating that APA Corporation continues to generate substantial profits relative to its equity base.

Overall, while the ROE for APA Corporation has shown fluctuations over the reporting periods, it demonstrates the company's ability to generate strong returns for its shareholders and efficiently utilize its equity to drive profitability. Investors and stakeholders should continue to monitor changes in the ROE to assess APA Corporation's financial performance and sustainability of returns.