Permian Resources Corporation (PR)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	984,701	476,306	749,840	138,175	-685,199
Total stockholders’ equity	US$ in thousands	9,138,530	6,336,100	2,935,750	2,750,720	2,603,960
ROE		10.78%	7.52%	25.54%	5.02%	-26.31%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $984,701K ÷ $9,138,530K
= 10.78%

Permian Resources Corporation's return on equity (ROE) has shown significant fluctuations over the past five years. In December 31, 2020, the company had a negative ROE of -26.31%, indicating that it was not efficiently utilizing its shareholders' equity to generate profit. However, by December 31, 2021, the ROE had improved to 5.02%, suggesting that the company had made progress in generating profit relative to its equity.

The trend continued to improve in the following years, with ROE increasing to 25.54% by December 31, 2022. This substantial increase indicates that Permian Resources Corporation was effectively leveraging its equity to generate higher returns for its shareholders.

The ROE saw a slight decline to 7.52% by December 31, 2023. While this decrease may raise some concerns, the company still managed to maintain a positive ROE, suggesting that it was still creating value for its shareholders.

By December 31, 2024, Permian Resources Corporation's ROE further improved to 10.78%. This indicates that the company continued to deliver solid returns to its shareholders, although the rate of increase was not as sharp as in previous years.

Overall, Permian Resources Corporation's ROE performance reflects a mix of challenges and improvements over the five-year period, with the company demonstrating the ability to enhance shareholder value through more effective utilization of its equity.