Coterra Energy Inc (CTRA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,201,000 | 5,279,000 | 1,564,000 | 291,000 | 956,000 |
| Long-term debt | US$ in thousands | 1,586,000 | 2,181,000 | 3,125,000 | 946,000 | 1,133,020 |
| Total stockholders’ equity | US$ in thousands | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 | 2,151,000 |
| Return on total capital | 15.05% | 35.57% | 10.52% | 9.20% | 29.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,201,000K ÷ ($1,586,000K + $13,039,000K)
= 15.05%
Coterra Energy Inc's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital decreased significantly to 14.07% from 35.04% in 2022. This suggests a decline in the company's efficiency in generating profits from its total capital investment. The return on total capital in 2023 was higher than that in 2021 (10.49%) and 2020 (8.84%), indicating an improvement over those years. However, the return on total capital was lower compared to 2019, where it stood at 28.39%.
Overall, while the return on total capital for Coterra Energy Inc has fluctuated, it is essential for the company to focus on improving efficiency in utilizing its total capital in order to generate higher returns for its investors.
Peer comparison
Dec 31, 2023