Southwestern Energy Company (SWN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -974,000 | 2,066,000 | 4,473,000 | 6,661,000 | 7,354,000 | 7,249,000 | 5,471,000 | 3,633,000 | 2,635,000 | 986,000 | -31,000 | -1,080,000 | -2,871,000 | -2,563,000 | -2,211,000 | -1,433,000 | 270,000 | 558,000 | 653,000 | 755,000 |
| Total assets | US$ in thousands | 11,991,000 | 12,973,000 | 13,001,000 | 12,937,000 | 12,926,000 | 13,104,000 | 12,932,000 | 11,847,000 | 11,848,000 | 9,241,000 | 5,394,000 | 5,247,000 | 5,160,000 | 4,157,000 | 4,555,000 | 5,275,000 | 6,717,000 | 6,598,000 | 6,545,000 | 6,446,000 |
| Operating ROA | -8.12% | 15.93% | 34.41% | 51.49% | 56.89% | 55.32% | 42.31% | 30.67% | 22.24% | 10.67% | -0.57% | -20.58% | -55.64% | -61.66% | -48.54% | -27.17% | 4.02% | 8.46% | 9.98% | 11.71% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-974,000K ÷ $11,991,000K
= -8.12%
Southwestern Energy Company's operating return on assets (operating ROA) has shown fluctuations over the past eight quarters. In Q1 2022, the operating ROA was 31.57%, which increased to 43.12% in Q2 2022. The ratio further improved to 55.81% in Q3 2022 and peaked at 57.10% in Q4 2022. However, there was a noticeable decline in Q1 2023, where the operating ROA dropped to 51.50%. This downward trend continued in subsequent quarters, with operating ROA figures of 34.41% in Q2 2023, 15.93% in Q3 2023, and 6.14% in Q4 2023.
The declining trend in operating ROA over the last four quarters indicates a deterioration in the company's ability to generate profits from its assets through operations. This could be attributed to various factors such as increasing operating expenses, declining revenues, or inefficiencies in asset utilization. It is essential for Southwestern Energy Company to analyze the reasons behind the decreasing operating ROA and take corrective actions to improve its operational efficiency and profitability.
Peer comparison
Dec 31, 2023