APA Corporation (APA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,599,000 | 5,620,000 | 2,888,000 | -4,102,000 | -2,152,000 |
| Long-term debt | US$ in thousands | — | 4,885,000 | 7,295,000 | 8,770,000 | 8,555,000 |
| Total stockholders’ equity | US$ in thousands | 4,732,000 | 2,258,000 | -618,000 | -1,639,000 | 3,255,000 |
| Return on total capital | 76.06% | 78.68% | 43.25% | -57.52% | -18.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,599,000K ÷ ($—K + $4,732,000K)
= 76.06%
APA Corporation's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 45.76%, significantly lower than the previous year's figure of 87.07% in 2022. This indicates a notable decrease in the company's ability to generate returns relative to its total capital employed.
However, compared to 2021 and 2020, where the return on total capital was 50.96% and -0.70% respectively, the company's performance in 2023 is relatively stable. It is worth noting that in 2020, APA Corporation experienced negative return on total capital, signifying that the company did not achieve profitability relative to its total capital investment during that period.
Looking back to 2019, the return on total capital was 3.47%, indicating a modest return on the company's capital deployed for that year. Overall, APA Corporation has exhibited varying levels of efficiency in utilizing its total capital to generate returns over the past five years, with the most significant fluctuations seen in the last two years.
Peer comparison
Dec 31, 2023