APA Corporation (APA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,084,000 | 2,111,000 | 3,266,000 | 3,020,000 | 3,277,000 | 3,537,000 | 3,869,000 | 4,692,000 | 6,123,000 | 5,991,000 | 4,966,000 | 3,964,000 | 2,337,000 | 1,666,000 | 1,625,000 | 708,000 | -4,486,000 | -7,502,000 | -7,572,000 | -7,396,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 39.47% | 41.28% | 60.22% | 115.84% | 123.43% | 328.11% | 545.70% | 1,056.76% | 1,447.52% | 998.50% | 850.34% | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,084,000K ÷ ($—K + $5,280,000K)
= 39.47%
Return on total capital (ROTC) is a key financial ratio that indicates the efficiency with which APA Corporation is utilizing its capital to generate profits. Looking at the trend in ROTC for APA Corporation from March 2022 to December 2024, we observe a significant variation in the performance.
In June 2022, the ROTC was exceptionally high at 850.34%, indicating a strong performance in generating profits relative to the total capital employed. This sharp increase continued, reaching a peak of 1,447.52% in December 2022, signaling an impressive return on investment.
However, from March 2023 to June 2024, there was a noticeable decline in ROTC figures, indicating a decreasing efficiency in utilizing capital to generate returns. The ROTC dropped from 1,056.76% in March 2023 to 39.47% in December 2024, reflecting a substantial downward trend.
Overall, the fluctuating trend in ROTC for APA Corporation suggests a period of high profitability followed by a decline in efficiency in generating returns on the total capital employed. This may indicate the need for the company to reassess and optimize its capital utilization strategies to maintain sustainable profitability in the future.
Peer comparison
Dec 31, 2024