Crescent Energy Co (CRGY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 243,293 | 219,445 | 145,518 | 236,683 | 157,633 | 372,821 | 424,624 | 228,949 | 183,818 |
| Long-term debt | US$ in thousands | 3,225,170 | 2,403,680 | 1,749,230 | 1,694,380 | 1,912,190 | 1,331,560 | 1,244,590 | 1,247,560 | 1,372,330 |
| 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 |
| Return on total capital | 3.28% | 3.66% | 2.75% | 4.44% | 2.90% | 7.69% | 8.91% | 5.04% | 3.96% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $243,293K ÷ ($3,225,170K + $4,195,430K)
= 3.28%
Crescent Energy Co's return on total capital has shown some fluctuations over the past few quarters. The return on total capital for the most recent quarter, ending September 30, 2024, was 3.28%, which was lower than the previous quarter's 3.66% and significantly lower than the high return of 8.91% reported in the first quarter of 2023.
The trend in return on total capital indicates variability in the company's ability to generate profits relative to the total capital employed in its operations. Lower returns may suggest inefficiencies or challenges in utilizing the company's capital effectively to generate earnings. It is important for Crescent Energy Co to closely monitor and assess the factors influencing its return on total capital and take proactive measures to improve efficiency and profitability.
Analyzing the return on total capital in conjunction with other financial metrics and industry benchmarks can provide a more comprehensive assessment of Crescent Energy Co's financial performance and overall operational effectiveness. Moreover, management should consider implementing strategies to enhance profitability and optimize the utilization of capital to drive sustainable growth and value creation for the company and its stakeholders.
Peer comparison
Sep 30, 2024