Crescent Energy Co (CRGY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Operating income	US$ in thousands	324,740	1,284,160	483,739
Total assets	US$ in thousands	6,803,340	6,019,850	5,157,460
Operating ROA		4.77%	21.33%	9.38%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $324,740K ÷ $6,803,340K
= 4.77%

Crescent Energy Co's operating return on assets (operating ROA) has shown significant variability over the past three years. In 2022, the company achieved a high operating ROA of 21.33%, indicating efficient utilization of its assets to generate operating income. However, this figure dropped substantially to 9.38% in 2021, suggesting a decrease in efficiency or profitability during that period.

In 2023, Crescent Energy Co's operating ROA further decreased to 4.77%, marking a significant decline from the previous year. This reduction may raise concerns about the company's ability to generate operating income relative to its asset base, potentially signaling operational challenges or changes in the business environment.

Overall, the fluctuating trend in Crescent Energy Co's operating ROA highlights the importance of monitoring the company's asset utilization and profitability dynamics to assess its operational performance and financial health accurately.