Chord Energy Corp (CHRD)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	8,702,260	5,076,620	4,679,800	1,032,900	915,942
ROE		9.75%	20.17%	30.57%	18.29%	-411.66%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $848,627K ÷ $8,702,260K
= 9.75%

Chord Energy Corp's return on equity (ROE) has seen significant fluctuations over the past five years. The ROE was -411.66% as of December 31, 2020, indicating that the company's net income was negative compared to its shareholder equity, which is a concerning indicator of poor financial performance.

However, there has been a notable turnaround in the following years. The ROE improved to 18.29% as of December 31, 2021, demonstrating a positive return on equity for the first time in the period analyzed. This improvement suggests that the company may have implemented strategic initiatives to enhance profitability and efficiency.

Subsequently, the ROE continued to increase, reaching 30.57% as of December 31, 2022. This significant growth reflects the company's ability to generate a higher return for its shareholders relative to its equity base, indicating strong financial performance during that year.

In the following years, the ROE saw some slight fluctuations. As of December 31, 2023, the ROE stood at 20.17%, indicating a moderate but still positive return on equity. By December 31, 2024, the ROE decreased further to 9.75%, although it remained positive, showing that the company was still generating a return on shareholder equity, albeit at a lower rate.

Overall, the analysis of Chord Energy Corp's ROE reveals a mixed performance trajectory, with significant improvements in some years but also periods of decline. It is essential for the company to monitor its ROE closely and continue implementing strategies to sustain and enhance its profitability and efficiency in generating returns for its shareholders.