Crescent Energy Co (CRGY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 59,921 | 398,733 | 234,571 | 221,479 | 494,683 | 371,730 | 1,105,399 | 1,330,600 | 616,146 | 724,862 | -47,932 | -628,033 | -375,697 | -656,556 | -907,789 | -168,555 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 1.91% | 13.94% | 11.06% | 11.24% | 29.02% | 23.21% | 75.82% | 147.60% | 72.65% | 85.79% | -7.79% | -150.11% | -55.07% | -30.32% | -38.83% | -6.60% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $59,921K ÷ ($—K + $3,139,630K)
= 1.91%
Return on total capital is a key financial metric used to evaluate a company's profitability and efficiency in generating returns from its total invested capital. Crescent Energy Co's return on total capital has fluctuated significantly over the reporting periods. In the first half of 2021 and part of 2022, the company experienced negative returns, indicating that it was not effectively utilizing its total capital to generate profits.
However, there was a notable turnaround starting from the second half of 2022, with Crescent Energy Co achieving positive returns on total capital. The company's return on total capital improved significantly in the subsequent periods, reaching a peak of 147.60% in the first quarter of 2023. This indicates that Crescent Energy Co was able to generate substantial profits relative to the total capital invested during this period.
Although there was some fluctuation in the return on total capital in the following quarters, the overall trend remained positive through 2024. The company maintained positive returns, albeit at varying levels, suggesting an improvement in its profitability and operational efficiency.
The positive trend in Crescent Energy Co's return on total capital from the second half of 2022 to the end of 2024 indicates a turnaround in the company's performance and its ability to generate returns from the total capital employed in its operations.
Peer comparison
Dec 31, 2024