APA Corporation (APA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,908,000 | 3,210,000 | 6,056,000 | 2,309,000 | -4,406,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,280,000 | 2,655,000 | 423,000 | -1,595,000 | -1,639,000 |
| Return on total capital | 36.14% | 120.90% | 1,431.68% | — | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,908,000K ÷ ($—K + $5,280,000K)
= 36.14%
APA Corporation's return on total capital has shown significant fluctuations over the past five years. In 2020 and 2021, the return was not provided, indicating potential challenges or changes in the company's operations during those periods.
In 2022, there was a remarkable increase, with a return of 1,431.68%, suggesting a substantial improvement in the company's efficiency in generating profits relative to its total capital invested.
The following year, in 2023, the return on total capital decreased considerably to 120.90%, which is still a healthy return but significantly lower than the previous year.
By the end of 2024, the return on total capital further declined to 36.14%, indicating a continued decrease in the company's ability to generate profits relative to its total invested capital.
Overall, the fluctuation in APA Corporation's return on total capital highlights the importance of monitoring and evaluating the company's efficiency in utilizing its capital resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024