Chesapeake Energy Corp (CHK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.30% | 98.60% | 97.84% | -68.66% | 96.33% |
| Operating profit margin | 36.03% | 32.19% | 16.90% | -166.09% | -0.36% |
| Pretax margin | 35.74% | 31.09% | 16.15% | -186.13% | -7.49% |
| Net profit margin | 27.74% | 42.03% | 17.03% | -185.76% | -3.61% |
Chesapeake Energy Corp's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been consistently high, ranging from 96.33% in 2019 to over 98% in the most recent years, indicating efficient cost management in generating revenues.
The operating profit margin has improved steadily from -166.09% in 2020 to 36.03% in 2023, reflecting better operational efficiency and cost control. The trend is similarly observed in the pretax and net profit margins, both showing significant improvements over the years.
However, it is important to note that the company experienced negative profit margins in 2020, indicating a loss-making year. Despite this, Chesapeake Energy Corp has managed to recover and improve its profitability metrics in the subsequent years.
Overall, the recent positive trends in profitability margins suggest that Chesapeake Energy Corp has been able to enhance its operational efficiency and profitability, which is a positive indicator for its financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.86% | 24.44% | 8.52% | -132.18% | -0.19% |
| Return on assets (ROA) | 16.83% | 31.91% | 8.58% | -147.84% | -1.90% |
| Return on total capital | 25.25% | 31.19% | 12.19% | — | 0.09% |
| Return on equity (ROE) | 22.55% | 54.10% | 16.66% | — | -7.06% |
Chesapeake Energy Corp's profitability ratios have shown fluctuating trends over the past five years. The Operating return on assets (Operating ROA) has generally been positive, ranging from 21.86% in 2023 to -132.18% in 2020. This ratio indicates how effectively the company is generating operating profits from its assets.
The Return on assets (ROA) has also varied, with values ranging from 16.83% in 2023 to -147.84% in 2020. ROA measures the overall profitability of the company in relation to its total assets.
Return on total capital has been positive for the years reported, with values increasing from 12.19% in 2021 to 25.25% in 2023. This ratio reflects the efficiency of the company in generating profits from its total invested capital.
Return on equity (ROE) has shown significant fluctuations, with a high of 54.10% in 2022 and a low of -7.06% in 2019. ROE evaluates how well the company is utilizing shareholders' equity to generate profits.
Overall, Chesapeake Energy Corp's profitability ratios indicate varying levels of performance and efficiency in utilizing its assets, capital, and equity for generating profits over the years analyzed. Investors and stakeholders may find these trends useful in evaluating the company's financial health and potential for returns.