Crescent Energy Co (CRGY)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-114,605	58,969	16,044	-16,352	263,427	257,250	865,469	1,142,216	480,598	411,864	-305,528	-860,287	-620,548	-671,162	-745,286	-151,703
Total assets	US$ in thousands	9,333,220	9,250,430	7,480,820	6,797,920	6,803,340	6,986,430	6,148,260	6,111,710	6,019,850	6,229,590	6,273,670	6,174,490	5,157,460	3,737,830	3,760,470	3,891,220
ROA		-1.23%	0.64%	0.21%	-0.24%	3.87%	3.68%	14.08%	18.69%	7.98%	6.61%	-4.87%	-13.93%	-12.03%	-17.96%	-19.82%	-3.90%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-114,605K ÷ $9,333,220K
= -1.23%

Return on assets (ROA) is a crucial financial ratio that measures a company's ability to generate profit from its assets. Looking at the data provided for Crescent Energy Co, we observe fluctuations in the ROA over the mentioned time periods.

From March 31, 2021, to December 31, 2022, the company's ROA remained negative, indicating that it was not efficient in utilizing its assets to generate profits during this period. However, starting from March 31, 2023, there was a significant improvement in the ROA, with the percentage increasing steadily over the following quarters until reaching a peak at 18.69% on March 31, 2023. This positive trend suggests that the company became increasingly effective in utilizing its assets to generate profits during this period.

Subsequently, there was some fluctuation in the ROA from June 30, 2023, to December 31, 2024, settling around a range of 0.21% to -1.23%. While the company managed to maintain a positive ROA for most of this period, the percentages were relatively low compared to the peak observed in March 31, 2023.

Overall, the analysis of Crescent Energy Co's ROA indicates a mix of performance in utilizing its assets to generate profits, with a notable improvement followed by some variability in the later periods. It is important for the company to continue focusing on optimizing its asset utilization to ensure sustainable profitability in the future.