Crescent Energy Co (CRGY)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	58,969	16,044	-16,352	67,610	20,865	192,096	241,468	96,674	68,508
Total stockholders’ equity	US$ in thousands	4,195,430	3,587,090	3,542,960	3,635,720	3,515,940	3,517,420	3,523,650	3,298,990	3,268,980
ROE		1.41%	0.45%	-0.46%	1.86%	0.59%	5.46%	6.85%	2.93%	2.10%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $58,969K ÷ $4,195,430K
= 1.41%

Crescent Energy Co's return on equity (ROE) has displayed significant variation over the past few quarters. The ROE figures for the latest quarter ending September 30, 2024, shows a ROE of 1.41%, a slight improvement compared to the previous quarter which stood at 0.45% as of June 30, 2024. However, the ROE had turned negative in the quarter ending March 31, 2024, at -0.46%, indicating lower profitability vis-a-vis shareholders' equity.

The trend in ROE seems to be volatile as seen from the fluctuations in the figures. For instance, looking back to September 30, 2023, the ROE was 0.59% and then jumped significantly to 5.46% by the end of June 30, 2023, showing a sharp increase. Similarly, March 31, 2023, recorded a ROE of 6.85%, indicating a strong financial performance at that time.

Considering a longer period, the December 31, 2022 figure stood at 2.93%, showing some stability, whereas the ROE for September 30, 2022, was 2.10%. It is interesting to note that there is a general positive trend in the ROE from the end of 2021 to the mid-year of 2023, followed by a downward trend in the recent quarters up to September 30, 2024.

Overall, the ROE of Crescent Energy Co has been fluctuating, indicating varying levels of profitability relative to shareholders' equity. This volatility may suggest changes in the company's financial performance, efficiency, or capital structure that necessitate further analysis to understand the drivers behind these fluctuations and to determine the factors impacting the company's return on equity.