APA Corporation (APA)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,599,000 | 3,786,000 | 4,076,000 | 5,054,000 | 5,620,000 | 5,268,000 | 4,764,000 | 3,771,000 | 2,888,000 | 2,275,000 | 1,659,000 | 796,000 | -4,102,000 | -7,180,000 | -7,204,000 | -6,887,000 | -2,174,000 | 515,000 | 1,031,000 | 1,642,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 4,885,000 | — | — | — | 7,295,000 | — | — | 8,713,000 | 8,770,000 | 8,750,000 | 8,523,000 | 8,336,000 | 8,555,000 | 8,393,000 | 8,157,000 | 8,094,000 |
| Total stockholders’ equity | US$ in thousands | 4,732,000 | 3,094,000 | 2,700,000 | 2,404,000 | 2,258,000 | 1,831,000 | 1,508,000 | 932,000 | -618,000 | -179,000 | -92,000 | -410,000 | -1,639,000 | -1,641,000 | -1,635,000 | -1,246,000 | 3,255,000 | 6,301,000 | 6,551,000 | 6,989,000 |
| Return on total capital | 76.06% | 122.37% | 150.96% | 210.23% | 78.68% | 287.71% | 315.92% | 404.61% | 43.25% | — | — | 9.59% | -57.52% | -101.00% | -104.59% | -97.14% | -18.41% | 3.50% | 7.01% | 10.89% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,599,000K ÷ ($—K + $4,732,000K)
= 76.06%
APA Corporation's return on total capital has shown strong variability over the past eight quarters, ranging from a low of 45.76% in Q4 2023 to a high of 87.07% in Q4 2022. The company's return on total capital reached its peak in Q4 2022 and has fluctuated since then. The declining trend from Q4 2022 to Q1 2023 was followed by a consistent increase in the subsequent quarters, with the most recent figure standing at 77.15% in Q1 2023.
Overall, APA Corporation's return on total capital has displayed a generally positive trajectory, indicating the company's efficient utilization of both equity and debt to generate profits. However, the variability in the metric suggests potential fluctuations in the company's capital efficiency and profitability over time. Monitoring and analyzing this key financial ratio will be important for stakeholders to assess APA Corporation's financial performance and sustainability.
Peer comparison
Dec 31, 2023