California Resources Corp (CRC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.77% | 87.08% | 88.55% | 81.84% | 16.29% |
| Operating profit margin | 19.39% | 28.85% | 30.00% | 15.51% | 16.29% |
| Pretax margin | 16.14% | 26.70% | 28.11% | 11.43% | -1.03% |
| Net profit margin | 11.76% | 20.14% | 19.36% | 32.40% | -1.06% |
California Resources Corp's profitability has shown significant improvement over the years as evidenced by its gross profit margin, which increased from 16.29% in 2019 to 83.77% in 2024. This indicates that the company has been able to effectively control its production costs and improve its pricing strategies to generate higher profits from its core operations.
Similarly, the operating profit margin also displayed positive growth, rising from 16.29% in 2019 to 19.39% in 2024. This suggests that the company has been able to enhance its operational efficiency and streamline its costs to improve profitability at the operating level.
The pretax margin indicates the company's ability to generate profits before accounting for taxes. California Resources Corp's pretax margin trended positively, increasing from -1.03% in 2019 to 16.14% in 2024. This signifies that the company has been able to effectively manage its expenses and optimize its revenue generation to generate higher profits before tax obligations.
Lastly, the net profit margin, which reflects the company's bottom line profitability, exhibited a fluctuating trend but generally improved from -1.06% in 2019 to 11.76% in 2024. This indicates that while the company has been able to generate higher revenues, there may have been fluctuations in its expenses impacting the overall net profitability.
Overall, California Resources Corp's profitability ratios have shown positive trends over the years, emphasizing the company's efforts to enhance operational efficiency, control costs, and drive profitability despite potential fluctuations in certain periods.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.69% | 20.21% | 20.47% | 7.62% | 6.17% |
| Return on assets (ROA) | 5.27% | 14.11% | 13.21% | 15.91% | -0.40% |
| Return on total capital | 13.28% | 29.29% | 33.06% | 12.87% | 9.56% |
| Return on equity (ROE) | 10.63% | 25.42% | 28.11% | 36.26% | — |
California Resources Corp's profitability ratios show a mixed performance over the years.
- Operating return on assets (Operating ROA) increased from 6.17% in 2019 to 20.21% in 2023 before slightly decreasing to 8.69% in 2024. This indicates that the company is generating more operating profit per dollar of assets utilized, with a significant improvement in 2022 and 2023.
- Return on assets (ROA) has shown volatility, improving from -0.40% in 2019 to 14.11% in 2023 before declining to 5.27% in 2024. The negative ROA in 2019 was concerning, but the subsequent improvement and fluctuations suggest varying levels of efficiency in asset utilization.
- Return on total capital demonstrates a similar trend to Operating ROA, with a notable increase from 9.56% in 2019 to 33.06% in 2022, followed by a decline to 13.28% in 2024. This ratio signifies the company's ability to generate returns for all capital invested, showing a peak in 2022.
- Return on equity (ROE) was not provided for 2019, but from 2021 to 2024, it declined from 36.26% to 10.63%. The decreasing trend indicates that the company's ability to generate profits from shareholders' equity has been weakening over these years.
In general, California Resources Corp has shown improvements in operational efficiency and return on invested capital, although the return to shareholders has been more mixed. The company should focus on sustaining and improving the positive trends in profitability to enhance overall financial performance.