EQT Corporation (EQT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.27% | 62.02% | 62.62% | 17.86% | 21.94% |
| Operating profit margin | 13.00% | 33.50% | 36.25% | -44.41% | -28.69% |
| Pretax margin | 4.79% | 30.46% | 31.01% | -51.25% | -41.00% |
| Net profit margin | 4.37% | 25.12% | 23.62% | -37.29% | -31.35% |
The profitability ratios of EQT Corporation show fluctuating performance over the years. The gross profit margin has been somewhat volatile, declining from 21.94% in 2020 to 17.86% in 2021, followed by a significant increase to 62.62% in 2022 before stabilizing around 60% in subsequent years. This indicates strong cost management and/or increased revenue generation in 2022 which boosted profitability.
On the other hand, the operating profit margin and pretax margin depict a more erratic pattern. Both margins were negative in 2020 and 2021, reflecting operational inefficiencies or significant expenses relative to revenues during those years. However, there was a sharp improvement in 2022 when operating profit margin turned positive at 36.25% and pretax margin reached 31.01%, indicating better operational performance and cost control measures.
The net profit margin also shows a similar trend, with negative margins in 2020 and 2021 which improved significantly in 2022 and continued to be positive in subsequent years. The sharp increase in net profit margin from 2021 to 2022 reflects the company's ability to improve operational efficiency and bottom-line profitability.
Overall, EQT Corporation's profitability ratios demonstrate a mixed performance with improvements in profitability metrics starting from 2022. This suggests that the company has taken steps to enhance its profitability through operational efficiency, cost management, and perhaps revenue growth strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.72% | 9.15% | 11.99% | -6.30% | -4.85% |
| Return on assets (ROA) | 0.58% | 6.86% | 7.81% | -5.29% | -5.29% |
| Return on total capital | 2.32% | 11.46% | 15.67% | -8.84% | -7.09% |
| Return on equity (ROE) | 1.12% | 11.75% | 15.85% | -11.48% | -10.36% |
EQT Corporation's profitability ratios exhibit varying trends over the five-year period from 2020 to 2024.
- Operating Return on Assets (Operating ROA) improved significantly from -4.85% in 2020 to reach 11.99% in 2022, indicating a positive trend in the company's ability to generate operating profits from its assets. However, there was a slight decline to 9.15% in 2023 and a further decrease to 1.72% in 2024.
- Return on Assets (ROA) also demonstrated an upward trajectory, increasing from -5.29% in 2020 to 7.81% in 2022, suggesting an enhancement in the company's overall profitability relative to its total assets. However, there was a decline to 6.86% in 2023 and a notable drop to 0.58% in 2024.
- Return on Total Capital depicted a similar pattern, with a notable improvement from -7.09% in 2020 to 15.67% in 2022, showcasing the company's effective utilization of its total capital to generate returns. Despite this improvement, there was a decrease to 11.46% in 2023 and a subsequent decline to 2.32% in 2024.
- Return on Equity (ROE) experienced fluctuations, with a drastic increase from -10.36% in 2020 to 15.85% in 2022, indicating a substantial growth in shareholder returns. However, it declined to 11.75% in 2023 and significantly dropped to 1.12% in 2024.
Overall, EQT Corporation's profitability ratios reflect a mix of positive and negative trends, highlighting fluctuations in the company's ability to generate profits relative to its assets, capital, and equity over the analyzed period. It is essential for stakeholders to further investigate the drivers behind these fluctuations to assess the company's financial performance accurately.