Coterra Energy Inc (CTRA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,121,000 | 1,625,000 | 4,065,000 | 1,158,000 | 201,000 |
| Total stockholders’ equity | US$ in thousands | 13,122,000 | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 |
| ROE | 8.54% | 12.46% | 32.11% | 9.87% | 9.07% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,121,000K ÷ $13,122,000K
= 8.54%
Coterra Energy Inc's return on equity (ROE) has shown fluctuating trends over the years. In 2020, the ROE was at 9.07%, which increased slightly to 9.87% in 2021. A significant improvement was seen in 2022 with an ROE of 32.11%, indicating a substantial return generated on the shareholders' equity. However, this high ROE was not sustained, as it decreased to 12.46% in 2023 and further dropped to 8.54% in 2024.
The variation in ROE suggests that Coterra Energy Inc's ability to generate profits from the shareholders' equity has been inconsistent. It is crucial for the company to analyze the factors influencing these fluctuations and take appropriate measures to enhance its profitability and efficiency in utilizing equity capital.
Peer comparison
Dec 31, 2024