California Resources Corp (CRC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 620,000 | 835,000 | 302,000 | 411,000 | 808,000 | 657,000 | 1,263,000 | 1,394,000 | 812,000 | 1,012,000 | 543,000 | 175,000 | 291,000 | -147,000 | -282,000 | -307,000 | -1,883,000 | -1,675,000 | -1,514,000 | -1,277,000 |
| Long-term debt | US$ in thousands | 1,132,000 | 1,131,000 | 1,161,000 | 541,000 | 540,000 | 589,000 | 593,000 | 592,000 | 592,000 | 591,000 | 591,000 | 590,000 | 589,000 | 589,000 | 589,000 | 588,000 | 597,000 | 0 | 0 | 1,000,000 |
| Total stockholders’ equity | US$ in thousands | 3,538,000 | 3,501,000 | 2,052,000 | 2,093,000 | 2,219,000 | 2,050,000 | 2,110,000 | 2,092,000 | 1,864,000 | 1,855,000 | 1,517,000 | 1,433,000 | 1,688,000 | 1,052,000 | 893,000 | 1,046,000 | 1,138,000 | -2,341,000 | -2,452,000 | -2,183,000 |
| Return on total capital | 13.28% | 18.03% | 9.40% | 15.60% | 29.29% | 24.90% | 46.73% | 51.94% | 33.06% | 41.37% | 25.76% | 8.65% | 12.78% | -8.96% | -19.03% | -18.79% | -108.53% | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $620,000K ÷ ($1,132,000K + $3,538,000K)
= 13.28%
California Resources Corp's return on total capital has exhibited significant fluctuations over the past few years. The company reported negative returns in the last quarter of 2020, with a notable decrease of -108.53%. However, there has been a gradual improvement since then, with returns remaining negative but showing signs of recovery. By the end of 2021, the return on total capital turned positive at 12.78%.
Subsequently, the company's return on total capital continued to improve, reaching a peak of 51.94% by the end of the first quarter of 2023. This significant increase indicates a positive trend in the company's ability to generate returns relative to its total capital. However, there was a slight dip in the following quarter to 46.73%, followed by further fluctuations in the subsequent quarters.
Overall, California Resources Corp's return on total capital demonstrates a mix of negative and positive performance, with periods of volatility. It is essential for the company to sustain the positive momentum and continue implementing strategies to enhance its capital efficiency and profitability.
Peer comparison
Dec 31, 2024