Chord Energy Corp (CHRD)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,100,070	1,273,180	1,583,790	571,904	70,680
Total assets	US$ in thousands	13,032,000	6,926,150	6,631,080	3,026,790	2,159,040
Operating ROA		8.44%	18.38%	23.88%	18.89%	3.27%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,100,070K ÷ $13,032,000K
= 8.44%

Chord Energy Corp's operating return on assets (operating ROA) has shown significant fluctuations over the past five years. The company's operating ROA increased from 3.27% as of December 31, 2020, to 18.89% as of December 31, 2021, showing a substantial improvement in profitability and efficiency. This positive trend continued into 2022, with the operating ROA reaching 23.88%, indicating a further increase in the company's ability to generate profits from its assets.

However, in 2023, Chord Energy Corp experienced a slight decrease in its operating ROA to 18.38%, signaling a potential challenge in maintaining the high levels of profitability seen in the previous year. This downward trend continued into 2024, with the operating ROA dropping to 8.44%, suggesting a significant decline in the company's ability to generate returns from its assets compared to the previous year.

Overall, Chord Energy Corp's operating ROA has shown a mixed performance over the past five years, with periods of strong growth followed by downturns. It is essential for the company to closely monitor and manage its operating efficiency to ensure consistent and sustainable profitability in the future.