Anadarko Petroleum Corp. (NYSE:APC)

Return on Assets (ROA)

The return on assets exhibited a declining trend over the observed period. Starting at 4.55% in 2012, it decreased sharply to 1.44% in 2013, and then transitioned into negative territory from 2014 onwards. The most significant drop occurred in 2015, with a ROA of -14.42%, followed by a partial improvement to -6.74% in 2016. This pattern indicates deteriorating asset profitability and operational challenges during the latter years.

Financial Leverage

Financial leverage showed a consistent upward trend throughout the five years. Beginning at a ratio of 2.55 in 2012 and 2013, it increased to 3.13 in 2014 and continued rising to 3.62 in 2015 and 3.73 in 2016. This gradual increase suggests a growing reliance on debt financing or higher financial risk exposure over time.

Return on Equity (ROE)

Return on equity followed a pattern similar to ROA, with a declining trajectory becoming more pronounced. It started at 11.59% in 2012 and dropped substantially to 3.66% in 2013. From 2014 onward, ROE turned negative, reaching -8.87% in 2014, plunging further to -52.2% in 2015, and slightly improving but remaining significantly negative at -25.15% in 2016. This trend reflects substantial erosion of shareholder value and profitability challenges.

Net Profit Margin

The net profit margin exhibits a clear downward trend over the five-year period. Starting at a positive 17.97% in 2012, it declines sharply to 5.39% in 2013, and turns negative thereafter, reaching -10.69% in 2014. The margin worsens significantly in 2015 to -70.55%, with a moderate improvement to -36.36% in 2016, yet still remains substantially below zero, indicating escalating losses relative to revenue.

Asset Turnover

Asset turnover remains relatively stable between 2012 and 2014 at approximately 0.25 to 0.27. However, a noticeable decline occurs in 2015, dropping to 0.20, and further decreases slightly to 0.19 in 2016. This suggests a reduction in efficiency with which the company is utilizing its assets to generate revenue in the latter years.

Financial Leverage

Financial leverage shows a consistent upward trend throughout the period. Starting at 2.55 in 2012 and 2013, it increases to 3.13 in 2014, then to 3.62 in 2015, and further to 3.73 in 2016. This rising leverage indicates an increasing reliance on debt financing or greater use of borrowed funds relative to equity.

Return on Equity (ROE)

Return on equity follows a trajectory similar to net profit margin. Beginning at 11.59% in 2012, it decreases sharply to 3.66% in 2013, then turns negative at -8.87% in 2014. The decline intensifies in 2015 to -52.20%, with a less severe but still negative figure of -25.15% in 2016. This trend reflects deteriorating profitability from the shareholders' perspective over the analyzed time frame.

Tax Burden

The tax burden ratio declined significantly from 0.68 in 2012 to 0.41 in 2013. Data for subsequent years is missing, preventing further trend analysis in later periods.

Interest Burden

The interest burden ratio decreased from 0.83 in 2012 to 0.74 in 2013, followed by a sharp negative value of -0.21 in 2014. No data is available for 2015 and 2016, indicating considerable volatility and a possible impact of increased interest expense or financial distress in 2014.

EBIT Margin

The EBIT margin exhibits a steep declining trend over the period. Starting at 31.96% in 2012, it fell sharply to 17.84% in 2013, further declining to 3.9% in 2014, and plummeting into negative territory at -92.18% in 2015 and -37.91% in 2016. This indicates worsening operational profitability and possible substantial losses in the later years.

Asset Turnover

Asset turnover remained relatively stable from 2012 to 2014, fluctuating narrowly between 0.25 and 0.27. However, it declined gradually in 2015 and 2016 to 0.20 and 0.19 respectively, suggesting a decrease in the efficiency of asset utilization to generate revenue.

Financial Leverage

Financial leverage increased steadily over the analyzed period, rising from 2.55 in 2012 and 2013 to 3.13 in 2014, then continuing upward to 3.62 in 2015 and 3.73 in 2016. This indicates a growing reliance on debt financing or increased use of leverage over time.

Return on Equity (ROE)

ROE shows a pronounced downward trajectory, starting at 11.59% in 2012, dropping to 3.66% in 2013, and turning negative thereafter: -8.87% in 2014, -52.2% in 2015, and -25.15% in 2016. This consistent decline reflects growing losses and deteriorating profitability for shareholders over the period.

Net Profit Margin Trends

The net profit margin shows a clear declining trend over the five-year period. Starting at a positive 17.97% in 2012, it sharply decreased to 5.39% in 2013 and turned negative in 2014 with -10.69%. The decline deepened considerably in 2015, reaching -70.55%, and slightly improved in 2016 to -36.36%. This indicates deteriorating profitability, with substantial losses incurred in the latter years.

Asset Turnover Trends

The asset turnover ratio remained relatively stable between 2012 and 2014, fluctuating around 0.25 to 0.27. In 2015, the ratio declined to 0.20 and further decreased slightly to 0.19 in 2016. This suggests a gradual reduction in the efficiency with which the company utilized its assets to generate sales over time.

Return on Assets (ROA) Trends

Return on assets mirrored the net profit margin trend but with less extreme variations. ROA started at 4.55% in 2012, then dropped substantially to 1.44% in 2013. It turned negative in 2014 at -2.84%, indicating a loss-generating environment relative to assets employed. The negative trend intensified in 2015 to -14.42% and remained significantly negative at -6.74% in 2016, reflecting declining asset profitability.

Overall Observations

The company experienced a marked deterioration in profitability metrics from 2012 through 2016, with both net profit margin and ROA turning substantially negative. Concurrently, asset turnover showed a mild downward trend, indicating a reduced ability to generate sales from assets. The combined effect points to considerable operational and financial challenges faced, especially from 2014 onward.

The financial data reveals several notable trends over the analyzed periods, highlighting shifts in profitability, efficiency, and financial stability.

Tax Burden

The tax burden ratio shows a significant decrease from 0.68 in 2012 to 0.41 in 2013. Data for subsequent years is missing, limiting further trend analysis in this metric.

Interest Burden

The interest burden ratio declines from 0.83 in 2012 to 0.74 in 2013, then drastically falls to a negative value of -0.21 in 2014. This negative figure might indicate unusual financial circumstances affecting interest expenses or earnings before interest and taxes during that year. Data for later years is unavailable to assess continuity or recovery.

EBIT Margin

There is a clear downward trend in EBIT margin, starting at a positive 31.96% in 2012 and sharply declining to 17.84% in 2013 and further to 3.9% in 2014. The margin turns substantially negative in 2015 and 2016, with -92.18% and -37.91%, respectively, reflecting significant operational losses and deteriorating core profitability over time.

Asset Turnover

Asset turnover remains relatively stable from 2012 to 2014, maintaining around 0.25 to 0.27. However, it declines moderately in 2015 and 2016 to 0.20 and 0.19. This suggests a slight reduction in asset utilization efficiency in generating sales.

Return on Assets (ROA)

ROA follows a declining trajectory, moving from a positive 4.55% in 2012 to 1.44% in 2013. It turns negative in 2014, dropping further to -14.42% in 2015 before improving somewhat but remaining negative at -6.74% in 2016. This pattern indicates worsening overall profitability relative to asset base throughout the observed periods, particularly severe in 2015.

Overall, the data indicates a period of financial strain, characterized by declining margins, deteriorating returns on assets, and reduced efficiency in asset utilization. The negative interest burden and EBIT margin in the mid-period suggest considerable operational and financial challenges faced during these years.

The financial data reveals significant volatility and a downward trend in key profitability and burden ratios over the five-year period examined.

Tax Burden

The tax burden ratio decreased sharply from 0.68 in 2012 to 0.41 in 2013, indicating a reduced proportion of earnings paid in taxes. Data for subsequent years is unavailable, preventing further trend analysis.

Interest Burden

The interest burden ratio exhibited a declining trend from 0.83 in 2012 to 0.74 in 2013, followed by a pronounced negative value of -0.21 in 2014. The negative sign suggests significant financial or accounting anomalies, such as interest expenses exceeding earnings before interest and taxes (EBIT), or other extraordinary items affecting this ratio. No data is available beyond 2014.

EBIT Margin

The EBIT margin demonstrated a steep negative trajectory, dropping from a relatively healthy 31.96% in 2012 to 17.84% in 2013. This downward trend accelerated sharply, reaching 3.9% in 2014, a severe loss of -92.18% in 2015, and still negative at -37.91% in 2016. This indicates a transition from profitable operations to deep operational losses, raising concerns about core profitability and cost management.

Net Profit Margin

Similarly, the net profit margin declined markedly, starting at a positive 17.97% in 2012 and plummeting to 5.39% in 2013. By 2014, the margin turned negative at -10.69%, followed by dramatic losses of -70.55% in 2015 and -36.36% in 2016. The pattern mirrors that of the EBIT margin but incorporates all expenses and taxes, emphasizing deteriorating overall profitability and financial health.

Overall, the data highlights a severe deterioration in profitability ratios and burden metrics after 2013, culminating in sustained losses and potential financial distress by 2015 and 2016. The negative values and steep declines suggest operational challenges, possibly influenced by external factors impacting the business environment or internal financial management issues.