Coterra Energy Inc (CTRA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,389,000 | 2,201,000 | 5,279,000 | 1,564,000 | 291,000 |
| Long-term debt | US$ in thousands | 3,535,000 | 1,586,000 | 2,181,000 | 3,125,000 | 946,000 |
| Total stockholders’ equity | US$ in thousands | 13,122,000 | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 |
| Return on total capital | 8.34% | 15.05% | 35.57% | 10.52% | 9.20% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,389,000K ÷ ($3,535,000K + $13,122,000K)
= 8.34%
Coterra Energy Inc's return on total capital has shown variability over the past five years. The return on total capital increased from 9.20% as of December 31, 2020, to 10.52% as of December 31, 2021, indicating a slight improvement in the company's efficiency in generating returns from its invested capital.
There was a significant spike in the return on total capital to 35.57% as of December 31, 2022, suggesting a substantial increase in the company's profitability and efficiency in that period. However, this high return was not sustained, as the ratio dropped to 15.05% by December 31, 2023.
In the most recent year, as of December 31, 2024, Coterra Energy Inc's return on total capital decreased to 8.34%, reflecting a decline in the company's ability to generate returns relative to its overall capital invested.
Overall, the trend in Coterra Energy Inc's return on total capital has been somewhat volatile, with fluctuations indicating potential shifts in the company's operational performance and profitability over the analyzed period.
Peer comparison
Dec 31, 2024