Crescent Energy Co (CRGY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 47,508 | 491,025 | 612,828 | -381,793 | -178,003 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,139,630 | 1,704,820 | 848,113 | 682,209 | 2,716,890 |
| Return on total capital | 1.51% | 28.80% | 72.26% | -55.96% | -6.55% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $47,508K ÷ ($—K + $3,139,630K)
= 1.51%
Crescent Energy Co's return on total capital has displayed significant fluctuations over the past five years. Starting at a negative 6.55% on December 31, 2020, the company's return worsened in 2021 to a substantial negative 55.96%. However, there was a remarkable turnaround in 2022, with the return shooting up to an impressive 72.26%. This positive momentum was somewhat sustained in 2023, although at a slightly lower rate of 28.80%. The return on total capital then tapered off in 2024 to a modest 1.51%.
The substantial negative returns in 2020 and 2021 may indicate operational inefficiencies or financial challenges faced by Crescent Energy Co during those years. The sharp improvement in 2022 suggests a successful turnaround strategy or a significant shift in business operations that positively impacted profitability. The subsequent years' figures show a more stable performance, albeit with a slight decline in 2024, which could be a cause for monitoring and further analysis.
Overall, Crescent Energy Co's return on total capital demonstrates a mix of both challenges and accomplishments, highlighting the importance of closely monitoring financial performance and implementing strategic decisions to optimize capital utilization and profitability.
Peer comparison
Dec 31, 2024