Permian Resources Corporation (PR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,840,460 | 1,212,860 | 965,777 | 200,032 | -701,131 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,138,530 | 6,336,100 | 2,935,750 | 2,750,720 | 2,603,960 |
| Return on total capital | 20.14% | 19.14% | 32.90% | 7.27% | -26.93% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,840,460K ÷ ($—K + $9,138,530K)
= 20.14%
Permian Resources Corporation's return on total capital has shown a significant improvement over the years. As of December 31, 2020, the company had a negative return on total capital at -26.93%, indicating that the company was not efficiently utilizing its capital to generate profits. However, by December 31, 2021, the company's return on total capital improved to 7.27%, signaling a turnaround in performance.
This positive trend continued into the following years, with the return on total capital increasing to 32.90% by December 31, 2022, indicating a substantial improvement in the company's ability to generate profits relative to its total capital employed. In 2023, the return on total capital decreased slightly to 19.14%, but remained at a healthy level, demonstrating the company's sustained profitability.
By December 31, 2024, Permian Resources Corporation's return on total capital further improved to 20.14%, reflecting continued efficiency in utilizing its capital to generate returns for its stakeholders.
Overall, the increasing trend in return on total capital showcases Permian Resources Corporation's enhanced profitability and effective capital management over the years, highlighting the company's ability to generate value for its investors.
Peer comparison
Dec 31, 2024