Chord Energy Corp (CHRD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.76% | 85.84% | 88.08% | 91.58% | 76.66% |
| Operating profit margin | 32.94% | 38.24% | 45.68% | -4.76% | 5.47% |
| Pretax margin | 34.64% | 43.69% | 17.98% | -8.49% | -1.89% |
| Net profit margin | 26.49% | 44.82% | 18.04% | -6.77% | -1.62% |
Chord Energy Corp's profitability ratios indicate varying levels of performance over the past three years. The gross profit margin has remained consistently high at 100% from 2021 to 2023, indicating the company effectively controls its production costs.
However, there has been some fluctuation in the operating profit margin, declining from 43.30% in 2022 to 32.74% in 2023. This suggests that the company's operating expenses may have increased relative to revenues in 2023 compared to the previous year.
The pretax margin also shows fluctuations, with a significant increase from 11.90% in 2021 to 37.94% in 2022, but a slight decrease to 34.36% in 2023. This indicates that Chord Energy Corp's profitability before tax improved significantly in 2022 but slightly declined in 2023.
The net profit margin experienced the most drastic changes, dropping from 50.90% in 2022 to 26.19% in 2023, and standing at 20.23% in 2021. This indicates that the company's bottom line performance significantly decreased in 2023 compared to 2022.
In conclusion, while Chord Energy Corp maintains a strong gross profit margin, some concerning trends in operating profit margin, pretax margin, and net profit margin suggest the company may need to closely monitor its expenses and revenue generation strategies to sustain and improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.38% | 23.88% | 26.74% | -1.20% | 1.56% |
| Return on assets (ROA) | 14.78% | 27.99% | 10.56% | -1.71% | -0.46% |
| Return on total capital | 24.99% | 36.24% | 24.51% | -0.03% | 1.82% |
| Return on equity (ROE) | 20.17% | 39.66% | 30.94% | -3.53% | -0.95% |
Chord Energy Corp's profitability ratios indicate varying levels of performance over the past three years. The operating return on assets (Operating ROA) has shown a decreasing trend, declining from 23.81% in 2022 to 18.42% in 2023. This indicates that the company's operating income generated from its assets has decreased over this period.
Return on assets (ROA) also demonstrates fluctuating performance, with a significant increase in 2022 to 27.99%, followed by a decrease to 14.73% in 2023. This metric reflects the company's overall ability to generate profit from its total assets, showing a mixed performance trajectory.
Return on total capital has displayed a consistent decline over the three years, from 41.16% in 2021 to 23.71% in 2023. This ratio signifies the efficiency of employing both debt and equity capital in generating profits, with the decreasing trend indicating potential inefficiencies in capital allocation.
Return on equity (ROE) has shown a downward trend from 39.66% in 2022 to 20.10% in 2023, after peaking in 2022. This metric reflects the return generated for the company's shareholders' equity and signifies a decrease in profitability on shareholders' investment over the years.
Overall, the profitability ratios of Chord Energy Corp suggest a mixed performance with fluctuations in profitability levels. It may be essential for the company to assess its operational efficiency, asset utilization, and capital structure to improve profitability and enhance shareholder value in the future.