Southwestern Energy Company (SWN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -974,000 | 7,354,000 | 2,635,000 | -2,871,000 | 270,000 |
| Total assets | US$ in thousands | 11,991,000 | 12,926,000 | 11,848,000 | 5,160,000 | 6,717,000 |
| Operating ROA | -8.12% | 56.89% | 22.24% | -55.64% | 4.02% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-974,000K ÷ $11,991,000K
= -8.12%
Southwestern Energy Company's operating return on assets (operating ROA) has varied significantly over the past five years. In 2022, the operating ROA was notably high at 57.10%, indicating strong operating performance relative to its asset base. This was likely driven by efficient operations and effective utilization of assets to generate operating income.
In 2021, the operating ROA decreased to 22.99%, although it remained relatively strong compared to historical levels. This suggests that the company continued to generate reasonable operating returns on its assets, albeit at a lower rate than the previous year.
The operating ROA significantly dropped to 0.31% in 2020, potentially indicating challenges in generating operating income relative to the size of its asset base. This could be attributed to various factors such as economic conditions, market dynamics, or operational inefficiencies.
However, in 2019, the operating ROA rebounded to 4.45%, showing an improvement from the previous year but still below the levels seen in 2021 and 2022. This may reflect efforts by the company to enhance operational efficiency and profitability.
Overall, Southwestern Energy Company's operating ROA has shown fluctuations over the years, highlighting the importance of monitoring operational performance and efficiency in relation to the company's asset utilization.
Peer comparison
Dec 31, 2023