EQT Corporation (EQT)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	685,296	2,314,410	2,718,000	-1,360,980	-877,666
Total assets	US$ in thousands	39,830,300	25,285,100	22,669,900	21,607,400	18,113,500
Operating ROA		1.72%	9.15%	11.99%	-6.30%	-4.85%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $685,296K ÷ $39,830,300K
= 1.72%

Operating return on assets (ROA) is a key financial ratio that indicates how efficient a company is at generating operating profits from its assets. For EQT Corporation, the operating ROA has shown fluctuations over the years as follows:

1. In December 31, 2020, the operating ROA was -4.85%, indicating that the company generated a negative return on its assets, possibly due to underperformance in its operating activities.

2. By December 31, 2021, the operating ROA further decreased to -6.30%, reflecting a deteriorating profitability trend and suggesting inefficiencies in asset utilization.

3. In December 31, 2022, there was a significant improvement in operating ROA to 11.99%, indicating a strong performance in generating operating profits relative to its assets.

4. The positive trend continued in December 31, 2023, with an operating ROA of 9.15%, demonstrating sustained operational effectiveness and efficient asset management.

5. However, by December 31, 2024, the operating ROA dropped to 1.72%, suggesting a decrease in profitability compared to the previous year, although still positive.

Overall, EQT Corporation's operating ROA has shown variability, with periods of negative returns followed by significant improvements and fluctuations. It is essential for the company to consistently monitor and improve its operating efficiency to ensure sustainable profitability and optimal asset utilization.