Crescent Energy Co (CRGY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 86.86% | 93.45% | 95.58% |
| Operating profit margin | 13.24% | 33.84% | 24.58% |
| Pretax margin | 3.70% | 3.50% | -1.00% |
| Net profit margin | 2.76% | 2.55% | -0.98% |
The profitability ratios of Crescent Energy Co show a fluctuating trend over the past three years. The gross profit margin has shown a decline from 95.58% in 2021 to 93.45% in 2022, and further to 86.86% in 2023. This may indicate a decrease in the company's ability to control direct costs related to production.
The operating profit margin experienced a significant drop from 33.84% in 2022 to 13.24% in 2023. This suggests that the company's operating expenses have increased relative to its revenue, leading to lower profitability at the operating level.
The pretax margin also decreased slightly from 3.50% in 2022 to 3.70% in 2023. Despite this improvement, the margin remains relatively low, indicating that Crescent Energy Co's pre-tax profitability is not very robust.
The net profit margin, reflecting the company's bottom-line profitability, improved from -0.98% in 2021 to 2.55% in 2022, but decreased to 2.76% in 2023. While the company has been able to turn a profit in the past two years, the slight decrease in the net profit margin in 2023 may warrant further investigation into the company's overall profitability.
Overall, Crescent Energy Co has shown fluctuations in profitability ratios over the past three years, which could be a signal for analysts and investors to closely monitor the company's financial performance and identify areas for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.77% | 21.33% | 9.38% |
| Return on assets (ROA) | 0.99% | 1.61% | -0.38% |
| Return on total capital | 4.44% | 5.03% | 0.77% |
| Return on equity (ROE) | 1.86% | 2.93% | -0.64% |
Crescent Energy Co's profitability ratios indicate a mixed performance over the past three years. The Operating Return on Assets (Operating ROA) has decreased significantly from 21.33% in 2022 to 4.77% in 2023, suggesting a decline in the company's ability to generate operating profits relative to its total assets.
The Return on Assets (ROA) also displays a downward trend, dropping from 1.61% in 2022 to 0.99% in 2023. This indicates that the company's efficiency in using its assets to generate profits has decreased over time.
The Return on Total Capital has shown some fluctuation, increasing from 0.77% in 2021 to 5.03% in 2022, but then decreasing to 4.44% in 2023. This ratio reflects the company's ability to generate profits from both debt and equity capital invested in the business.
Similarly, the Return on Equity (ROE) has displayed a decreasing trend, declining from 2.93% in 2022 to 1.86% in 2023. ROE shows how effectively the company is utilizing shareholders' equity to generate profits.
Overall, Crescent Energy Co's profitability ratios indicate a need for further analysis to understand the factors driving these changes and to identify areas for improvement in profitability and efficiency.