Chord Energy Corp (CHRD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	848,627	1,023,780	1,430,460	188,960	-3,770,570
Total assets	US$ in thousands	13,032,000	6,926,150	6,631,080	3,026,790	2,159,040
ROA		6.51%	14.78%	21.57%	6.24%	-174.64%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $848,627K ÷ $13,032,000K
= 6.51%

Chord Energy Corp's return on assets (ROA) has shown significant fluctuations over the past five years. In December 2020, the ROA was highly negative at -174.64%, indicating that the company incurred substantial losses in relation to its assets. However, by December 2021, the ROA improved to 6.24%, suggesting a turnaround in the company's asset management efficiency.

In the subsequent years, Chord Energy Corp continued to enhance its ROA performance. By December 2022, the ROA increased significantly to 21.57%, reflecting a notable improvement in the company's ability to generate earnings from its assets. In December 2023, the ROA slightly decreased to 14.78%, but remained at a respectable level compared to the baseline.

As of December 2024, Chord Energy Corp's ROA stood at 6.51%, showing a slight decline from the previous year. Despite this slight decrease, the company has managed to maintain a positive return on assets, indicating that it is effectively utilizing its assets to generate profits.

Overall, Chord Energy Corp has demonstrated a mixed performance in terms of return on assets over the past five years, with notable improvements in asset utilization efficiency from initial significant losses to positive returns, albeit with some fluctuations in between. It is essential for the company to monitor and continue efforts to optimize its asset management strategies to sustain and further enhance its ROA in the future.