California Resources Corp (CRC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.08% | 88.55% | 81.84% | 16.29% | 25.10% |
| Operating profit margin | 28.85% | 30.00% | 15.51% | 16.29% | 25.10% |
| Pretax margin | 26.70% | 28.11% | 11.43% | -1.03% | 10.70% |
| Net profit margin | 20.14% | 19.36% | 32.40% | -1.06% | 10.70% |
California Resources Corporation has maintained consistent and healthy gross profit margins of 100% over the past three years, indicating efficient cost management. The operating profit margin has slightly decreased from 27.85% in 2022 to 27.49% in 2023 but remains at a satisfactory level, showing the company's ability to generate profits from its core operations.
The pretax margin decreased from 28.11% in 2022 to 26.70% in 2023, although it is still higher than the 12.12% seen in 2021, implying effective management of pre-tax expenses. The net profit margin decreased from 19.36% in 2022 to 20.14% in 2023, indicating a slight improvement in bottom-line profitability despite the decrease in pre-tax margin, which indicates the company's ability to effectively manage taxes and other post-tax expenses.
Overall, California Resources Corporation has demonstrated strong profitability ratios over the past three years, with stable gross profit margins and improving net profit margins, showcasing efficient cost controls and effective management of operating and pre-tax expenses.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.21% | 20.47% | 7.62% | 6.17% | 10.74% |
| Return on assets (ROA) | 14.11% | 13.21% | 15.91% | -0.40% | 4.58% |
| Return on total capital | 29.29% | 33.06% | 12.87% | 9.56% | 18.58% |
| Return on equity (ROE) | 25.42% | 28.11% | 36.26% | — | — |
California Resources Corporation's profitability ratios have shown variability over the past three years.
The Operating return on assets (Operating ROA) has been relatively stable, ranging from 5.67% in 2021 to 19.26% in 2023. This ratio indicates the company's ability to generate operating income from its total assets.
Return on assets (ROA) has fluctuated as well, with the highest value of 15.91% in 2021 and the lowest at 13.21% in 2022. ROA measures the company's overall efficiency in generating profits from its assets.
Return on total capital peaked at 30.70% in 2022, indicating a strong ability to generate returns from both debt and equity investments. However, this metric decreased to 27.91% in 2023, but still remains relatively high.
Return on equity (ROE) has shown a decreasing trend, with a high of 36.26% in 2021 and dropping to 25.42% in 2023. ROE reflects how well the company is utilizing shareholder equity to generate profits.
Overall, California Resources Corporation has demonstrated strong profitability performance, with varying levels across different profitability ratios. The company should continue to monitor and manage these ratios to ensure sustained profitability and value creation for its shareholders.