Crescent Energy Co (CRGY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,139,630	2,859,930	2,120,100	1,970,810	1,704,820	1,601,750	1,457,880	901,511	848,113	844,922	615,257	418,374	682,209	2,165,260	2,337,660	2,554,880
ROE		-3.65%	2.06%	0.76%	-0.83%	15.45%	16.06%	59.36%	126.70%	56.67%	48.75%	-49.66%	-205.63%	-90.96%	-31.00%	-31.88%	-5.94%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-114,605K ÷ $3,139,630K
= -3.65%

The return on equity (ROE) of Crescent Energy Co has exhibited significant fluctuations over the past few years. The company experienced negative ROE figures in the initial quarters of the data, indicating that the company was generating negative returns relative to its equity base. However, there was a notable turnaround in the latter part of the data set, with ROE turning positive.

Specifically, the ROE improved from negative figures in the range of -90.96% to -205.63% in December 2021 and March 2022 to positive figures in the range of 48.75% to 126.70% in September 2022 to March 2023. This suggests that Crescent Energy Co successfully enhanced its profitability and efficiency in generating returns for its shareholders during this period.

Subsequently, there was some fluctuation in ROE figures in the latter part of the data, with values ranging from 15.45% to -3.65% in December 2023 to December 2024. These fluctuations indicate some variability in the company's ability to generate returns on the equity invested in the business.

Overall, the analysis of Crescent Energy Co's ROE highlights a mix of negative and positive trends, with a significant improvement in profitability and efficiency observed in the middle period of the data set. The company should continue to focus on sustainable growth and efficient use of its equity to maintain positive ROE figures in the future.