Permian Resources Corporation (PR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.10% | 52.88% | 66.48% | 53.25% | 7.12% |
| Operating profit margin | 34.89% | 35.13% | 47.27% | 35.99% | -15.38% |
| Pretax margin | 31.01% | 33.18% | 40.83% | 13.47% | -132.71% |
| Net profit margin | 19.69% | 15.26% | 35.18% | 13.42% | -118.04% |
Permian Resources Corporation has shown a significant improvement in its profitability ratios over the analyzed period. The Gross Profit Margin has steadily increased from 7.12% in 2020 to 66.48% in 2022, indicating a stronger ability to generate revenue after accounting for the cost of goods sold. However, the margin dipped slightly in 2023 and 2024 but remained above 45%.
The Operating Profit Margin also exhibited a positive trend, starting at -15.38% in 2020, turning to a positive 47.27% in 2022, reflecting efficient cost management and operational performance. Although there was a slight decline in 2023 and 2024, the margin remained relatively stable around 35%.
The Pretax Margin improved significantly from -132.71% in 2020 to 40.83% in 2022, demonstrating more effective management of operating costs and expenses. Despite a slight decrease in the subsequent years, the company maintained a healthy margin above 30%, indicating good financial health and profitability.
The Net Profit Margin, which was negative in 2020, turned positive in 2021 and continued to increase to 35.18% in 2022. Although there was a decline in 2023, the company recovered in 2024 with a net profit margin of 19.69%, indicating a solid performance in generating profits after all expenses are considered. Overall, Permian Resources Corporation's profitability ratios reflect a positive trend and solid financial performance during the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.32% | 7.33% | 11.86% | 9.74% | -2.33% |
| Return on assets (ROA) | 5.83% | 3.18% | 8.83% | 3.63% | -17.90% |
| Return on total capital | 20.14% | 19.14% | 32.90% | 7.27% | -26.93% |
| Return on equity (ROE) | 10.78% | 7.52% | 25.54% | 5.02% | -26.31% |
Permian Resources Corporation's profitability ratios have shown a positive trend over the years, indicating improving profitability and efficiency in utilizing its assets and capital.
- Operating return on assets (Operating ROA) increased from -2.33% in 2020 to 10.32% in 2024, with a peak at 11.86% in 2022, suggesting that the company's operational performance improved significantly during this period.
- Return on assets (ROA) also displayed an upward trajectory, rising from -17.90% in 2020 to 5.83% in 2024. Although it experienced fluctuations, the general trend indicates a better utilization of assets to generate profits.
- Return on total capital depicted substantial growth, escalating from -26.93% in 2020 to 20.14% in 2024. The significant increase in 2022 to 32.90% highlights the company's ability to generate returns on its total invested capital efficiently.
- Return on equity (ROE) exhibited a similar positive trend, climbing from -26.31% in 2020 to 10.78% in 2024, with a notable improvement in 2022 at 25.54%. This suggests that the company's shareholders' equity has been rewarding them with higher returns over the years.
Overall, Permian Resources Corporation's profitability ratios show a consistent improvement, indicating enhanced operational efficiency and better utilization of resources to generate profits and create value for its stakeholders.