Antero Resources Corp (AR)
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 | 460 | 453,130 | 2,573,900 | 23,860 | -953,447 |
| Long-term debt | US$ in thousands | 1,489,230 | 1,537,600 | 1,183,480 | 2,125,440 | 3,001,590 |
| Total stockholders’ equity | US$ in thousands | 7,021,650 | 6,901,520 | 6,754,560 | 5,757,160 | 5,767,700 |
| Return on total capital | 0.01% | 5.37% | 32.42% | 0.30% | -10.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $460K ÷ ($1,489,230K + $7,021,650K)
= 0.01%
Based on the provided data on Antero Resources Corp's return on total capital, we can see a fluctuating trend over the years. As of December 31, 2020, the return on total capital was negative at -10.87%, indicating that the company was not effectively generating returns on its total invested capital.
However, there was a significant improvement by December 31, 2022, with a return on total capital of 32.42%, showcasing a substantial turnaround in the company's ability to utilize its capital efficiently. This suggests improved operational performance or strategic decisions that enhanced the company's profitability.
The return on total capital dipped in the following years, but it stayed positive at 0.30% by December 31, 2021, 5.37% by December 31, 2023, and only a minimal return of 0.01% by December 31, 2024. These fluctuations might indicate various factors affecting the company's financial performance, such as changes in market conditions, operational challenges, or capital allocation strategies.
Overall, the varying trend in Antero Resources Corp's return on total capital highlights the importance of consistent monitoring and management of capital allocation to ensure optimal returns for the company and its shareholders.
Peer comparison
Dec 31, 2024