Chesapeake Energy Corp (CHK)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	2,419,000	5,430,000	6,243,000	7,089,000	4,936,000	2,790,000	1,562,000	-114,000	945,000	-905,000	-1,305,000	-1,142,000	-9,734,000	-9,642,000	-8,958,000	-8,584,000	-308,000	620,000	535,000	188,000
Total stockholders’ equity	US$ in thousands	10,729,000	10,268,000	10,396,000	10,283,000	9,124,000	6,347,000	5,808,000	5,383,000	5,671,000	3,038,000	3,413,000	3,881,000	-5,341,000	-4,940,000	-4,209,000	-3,945,000	4,364,000	4,696,000	4,191,000	4,097,000
ROE		22.55%	52.88%	60.05%	68.94%	54.10%	43.96%	26.89%	-2.12%	16.66%	-29.79%	-38.24%	-29.43%	—	—	—	—	-7.06%	13.20%	12.77%	4.59%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,419,000K ÷ $10,729,000K
= 22.55%

The return on equity (ROE) of Chesapeake Energy Corp has shown significant fluctuations over the past few quarters. In the most recent quarter ending December 31, 2023, the ROE stood at 22.55%, reflecting a moderate return generated on shareholder equity.

However, it is important to note that the ROE has been volatile during the previous quarters, with values ranging from negative figures in some instances to high positive percentages. This volatility may indicate fluctuations in profitability and efficiency in utilizing shareholder equity.

The peak ROE of 68.94% in March 31, 2023, followed by a decline in the subsequent quarters, suggests potential challenges in sustaining high levels of profitability. The negative ROE in some quarters, such as -2.12% in March 31, 2022, and consecutive negative ROEs in 2021, indicate periods where the company did not generate sufficient returns to cover the cost of equity.

Overall, the company's ROE performance has been mixed, with periods of strong profitability interspersed with weaker performance. Further analysis is needed to understand the specific factors driving these fluctuations and to assess the company's long-term profitability and sustainability.