Crescent Energy Co (CRGY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 81.96% | 54.74% | 85.65% | 83.51% | 73.19% |
| Operating profit margin | 7.45% | 13.63% | 42.01% | 32.75% | -16.72% |
| Pretax margin | -5.76% | 14.49% | 16.91% | -29.28% | -28.65% |
| Net profit margin | -3.91% | 2.84% | 15.72% | -29.26% | -28.66% |
Crescent Energy Co's profitability ratios show fluctuations over the years. The gross profit margin has generally increased from 73.19% in 2020 to 81.96% in 2024, indicating the company's ability to control production costs and markup its products efficiently.
The operating profit margin has shown variability, starting from a negative figure of -16.72% in 2020, significantly improving to 32.75% in 2021 and 42.01% in 2022, but dropping to 7.45% in 2024. This suggests fluctuations in the company's operational efficiency and cost management.
The pretax margin also exhibits volatility, with negative values in 2020 and 2021, turning positive in subsequent years but dropping to -5.76% in 2024. This indicates the impact of various factors, including taxes, on the company's profitability before tax.
The net profit margin follows a similar trend, moving from negative values in 2020 and 2021 to positive figures in the following years. However, the net profit margin decreases to -3.91% in 2024, reflecting a decline in the company's bottom-line profitability.
Overall, while Crescent Energy Co has shown improvements in its gross profit margin and some profitability ratios over the years, the fluctuations in operating profit margin, pretax margin, and net profit margin suggest evolving challenges in cost management and overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.34% | 4.77% | 21.33% | 9.38% | -3.23% |
| Return on assets (ROA) | -1.23% | 0.99% | 7.98% | -8.38% | -5.53% |
| Return on total capital | 1.51% | 28.80% | 72.26% | -55.96% | -6.55% |
| Return on equity (ROE) | -3.65% | 3.97% | 56.67% | -63.36% | -7.95% |
Crescent Energy Co's profitability ratios have shown fluctuations over the years. The Operating return on assets (Operating ROA) improved from -3.23% in 2020 to 21.33% in 2022 but then decreased to 2.34% in 2024. This indicates that the company's operating income generated from its assets has been inconsistent.
Return on assets (ROA) was negative in 2020 and 2021 but turned positive in the following years, reaching 7.98% in 2022 before declining to 0.99% in 2023. The fluctuation suggests that Crescent Energy Co's overall profitability relative to its total assets has been volatile.
Return on total capital experienced a significant negative return in 2021 at -55.96%, followed by a substantial improvement to 72.26% in 2022. However, this metric decreased to 1.51% in 2024, indicating that the company's efficiency in generating returns from total invested capital has been inconsistent.
Return on equity (ROE) displayed a similar pattern with negative returns in 2020 and 2021, notably -63.36% in 2021. The ratio turned positive in 2022 at 56.67%, but then fell to 3.97% in 2023 and became negative again at -3.65% in 2024. This highlights the varying returns generated for shareholders' equity over the years.
Overall, Crescent Energy Co's profitability ratios depict a mixed performance, with fluctuations in profitability and varying levels of returns relative to assets, total capital, and equity. Further analysis of the company's financial strategies and operational efficiency may be needed to understand the underlying reasons for these fluctuations.