Coterra Energy Inc (CTRA)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,405,000 | 1,671,000 | 1,778,000 | 1,768,000 | 2,201,000 | 2,944,000 | 4,045,000 | 5,369,000 | 5,279,000 | 5,189,000 | 3,748,000 | 2,192,000 | 1,568,000 | 485,892 | 384,359 | 384,075 | 295,476 | 354,793 | 492,103 | 689,192 |
| Long-term debt | US$ in thousands | 3,535,000 | 2,066,000 | 2,071,000 | 2,076,000 | 1,586,000 | 1,592,000 | 2,171,000 | 2,176,000 | 2,181,000 | 2,188,000 | 2,981,000 | 3,090,000 | 3,125,000 | 946,509 | 946,316 | 946,123 | 946,000 | 973,712 | 1,045,500 | 1,045,260 |
| Total stockholders’ equity | US$ in thousands | 13,122,000 | 13,034,000 | 13,029,000 | 13,089,000 | 13,039,000 | 12,789,000 | 12,659,000 | 12,643,000 | 12,659,000 | 12,659,000 | 12,191,000 | 11,718,000 | 11,738,000 | 2,327,000 | 2,300,000 | 2,306,000 | 2,216,000 | 2,118,490 | 2,165,980 | 2,168,400 |
| Return on total capital | 8.43% | 11.07% | 11.77% | 11.66% | 15.05% | 20.47% | 27.28% | 36.23% | 35.57% | 34.95% | 24.70% | 14.80% | 10.55% | 14.84% | 11.84% | 11.81% | 9.34% | 11.47% | 15.32% | 21.45% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,405,000K ÷ ($3,535,000K + $13,122,000K)
= 8.43%
Coterra Energy Inc's return on total capital has shown fluctuations over the past few years. The ratio was at its peak at 36.23% as of March 31, 2023, indicating that the company was generating $0.36 in profit for every dollar of capital employed. Subsequently, the ratio experienced a decline, falling to 8.43% by December 31, 2024.
The trend in the return on total capital reflects varying levels of profitability and efficiency in the utilization of both debt and equity capital by Coterra Energy Inc. The decline in the ratio from 2023 to 2024 suggests potential challenges in maintaining profitability and effectively leveraging its capital base. It would be advisable for the company to analyze the factors contributing to this decline and strategize accordingly to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024