Crescent Energy Co (CRGY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 236,644 | 228,902 | 31,058 |
| Long-term debt | US$ in thousands | 1,694,380 | 1,247,560 | 1,030,410 |
| Total stockholders’ equity | US$ in thousands | 3,635,720 | 3,298,990 | 3,019,660 |
| Return on total capital | 4.44% | 5.03% | 0.77% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $236,644K ÷ ($1,694,380K + $3,635,720K)
= 4.44%
Crescent Energy Co's return on total capital has shown a fluctuating trend over the past three years. In 2021, the return on total capital was at a relatively low level of 0.77%, indicating that the company's ability to generate profits from the total capital employed was weak. However, there was a significant improvement in 2022, with the return on total capital increasing to 5.03%, reflecting better efficiency in utilizing the total capital to generate returns.
Unfortunately, in 2023, there was a decline in the return on total capital to 4.44%. While still an improvement compared to 2021, the decrease from the previous year suggests a potential decrease in profitability or efficiency in managing the total capital.
It is important for Crescent Energy Co to further analyze the factors contributing to the fluctuations in the return on total capital to identify areas for improvement and sustainably enhance profitability in the future.
Peer comparison
Dec 31, 2023