Coterra Energy Inc (CTRA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.21% | 85.19% | 89.87% | 74.89% | 72.30% |
| Operating profit margin | 25.45% | 36.42% | 57.55% | 45.35% | 20.19% |
| Pretax margin | 24.64% | 35.98% | 57.11% | 43.55% | 16.51% |
| Net profit margin | 20.54% | 27.48% | 44.91% | 33.57% | 13.71% |
Coterra Energy Inc's profitability ratios show a generally positive trend over the five-year period from 2020 to 2024.
1. Gross Profit Margin: The gross profit margin has consistently improved from 72.30% in 2020 to 82.21% in 2024. This indicates efficient cost management and an increase in profitability on each dollar of sales.
2. Operating Profit Margin: Coterra Energy Inc's operating profit margin shows a significant increase from 20.19% in 2020 to 25.45% in 2024. This suggests the company has been able to control its operating expenses effectively and improve operational efficiency.
3. Pretax Margin: The pretax margin reflects the company's ability to generate profits before accounting for taxes. Coterra Energy Inc shows a fluctuating trend in pretax margin, with a peak of 57.11% in 2022, indicating strong profitability, although it decreased to 24.64% in 2024.
4. Net Profit Margin: The net profit margin, which measures profitability after all expenses, has shown a mixed trend over the years. It increased from 13.71% in 2020 to 44.91% in 2022, but declined to 20.54% in 2024. This suggests that while the company has achieved high profitability in some years, it faced challenges in maintaining profitability in others.
Overall, Coterra Energy Inc's profitability ratios demonstrate a positive performance in terms of managing costs and generating profits, albeit with some fluctuations in profitability levels over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.42% | 10.55% | 25.85% | 7.86% | 6.54% |
| Return on assets (ROA) | 5.18% | 7.96% | 20.17% | 5.82% | 4.44% |
| Return on total capital | 8.34% | 15.05% | 35.57% | 10.52% | 9.20% |
| Return on equity (ROE) | 8.54% | 12.46% | 32.11% | 9.87% | 9.07% |
Coterra Energy Inc's profitability ratios have shown some fluctuations over the years based on the data provided.
1. Operating return on assets (Operating ROA) has improved from 6.54% in 2020 to 25.85% in 2022, indicating that the company's operating income generated from its assets has been increasing significantly. However, there was a slight decrease to 10.55% in 2023 and a further drop to 6.42% in 2024.
2. Return on assets (ROA) has followed a similar trend, with an increase from 4.44% in 2020 to 20.17% in 2022, reflecting the company's ability to generate profits from its total assets. Nonetheless, there was a decline to 7.96% in 2023 and a further decrease to 5.18% in 2024.
3. Return on total capital peaked at 35.57% in 2022, indicating the company's effectiveness in generating returns from its total capital employed. However, the ratio decreased to 15.05% in 2023 and dropped further to 8.34% in 2024.
4. Return on equity (ROE) also showed an upward trend, reaching 32.11% in 2022 from 9.07% in 2020, demonstrating how efficiently the company utilized shareholder equity to generate profits. Nevertheless, there was a decrease to 12.46% in 2023 and a drop to 8.54% in 2024.
Overall, Coterra Energy Inc's profitability ratios indicate that while the company showed significant improvements in profitability in 2022, there were declines in the subsequent years. It is essential for the company to assess its operations and strategies to sustain or improve its profitability in the future.