Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Anadarko Petroleum Corp., long-term (investment) activity ratios
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited an initial increasing trend from 0.35 in 2012 to a peak of 0.39 in 2014, indicating improved efficiency in the use of fixed assets to generate sales during that period. However, this was followed by a decline to 0.28 in 2015 and further to 0.26 in 2016, suggesting a reduction in asset utilization efficiency related to fixed assets over the last two years analyzed.
- Total Asset Turnover
- The total asset turnover ratio followed a similar pattern to net fixed asset turnover, rising slightly from 0.25 in 2012 to 0.27 in 2013 and remaining stable in 2014. Subsequently, the ratio decreased noticeably to 0.20 in 2015 and then to 0.19 in 2016. This decline reflects a diminished ability to generate revenue from the total asset base, especially in the recent years.
- Equity Turnover
- The equity turnover ratio showed an upward trend from 0.65 in 2012 to a high of 0.83 in 2014, indicating enhanced efficiency in generating sales relative to shareholders’ equity within this period. Following this peak, the ratio decreased moderately to 0.74 in 2015 and further to 0.69 in 2016, yet it remained above the initial values of 2012 and 2013, suggesting a relatively sustained though slightly reduced performance in equity utilization.
- Overall Trends and Insights
- Across the analyzed ratios, efficiency improvements were evident from 2012 through 2014, marked by increasing turnover metrics that point to better asset and equity utilization. However, a reversal of these trends is noticeable from 2015 onwards, with all ratios showing declines. The more pronounced decreases in net fixed asset and total asset turnover suggest operational challenges or changes affecting asset productivity. In contrast, the equity turnover ratio, while also declining post-2014, maintained relatively better levels, indicating that equity remained comparatively more effective in generating sales than total or fixed assets in the latter years.
Net Fixed Asset Turnover
Anadarko Petroleum Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales revenues | ||||||
| Net properties and equipment | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Net fixed asset turnover = Sales revenues ÷ Net properties and equipment
= ÷ =
2 Click competitor name to see calculations.
- Sales Revenues
- Sales revenues initially exhibited a consistent upward trend from 2012 to 2014, increasing from US$13,307 million to US$16,375 million. However, a significant decline is observed in the subsequent years, with revenues dropping to US$9,486 million in 2015 and further to US$8,447 million in 2016. This indicates a sharp downturn in revenue generation starting in 2015.
- Net Properties and Equipment
- The net properties and equipment value increased gradually from US$38,398 million in 2012 to a peak of US$41,589 million in 2014. Following this peak, there is a noticeable reduction, with the value declining to US$33,751 million in 2015 and slightly further to US$32,168 million in 2016. This suggests asset divestitures, impairments, or decreased capital expenditures during the latter period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a moderate improvement between 2012 and 2014, moving from 0.35 to 0.39, indicating enhanced efficiency in using fixed assets to generate sales during that period. However, there is a pronounced decline to 0.28 in 2015 and 0.26 in 2016, reflecting decreased efficiency and possibly the combined effect of lower sales and reduced assets.
- Overall Observations
- The combined analysis reveals that both sales revenues and net properties and equipment peaked around 2014 and sharply decreased thereafter. The decline in net fixed asset turnover ratio further corroborates a reduction in asset utilization efficiency in generating sales during the 2015 and 2016 periods. This pattern may imply challenging market conditions, restructuring, or a strategic shift affecting operational and asset management performance in the most recent years analyzed.
Total Asset Turnover
Anadarko Petroleum Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Total asset turnover = Sales revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales Revenues
- Sales revenues exhibited a rising trend from 2012 to 2014, increasing from 13,307 million US dollars in 2012 to a peak of 16,375 million US dollars in 2014. Subsequently, there was a significant decline in revenues over the next two years, reaching 9,486 million dollars in 2015 and further decreasing to 8,447 million dollars in 2016.
- Total Assets
- Total assets followed an upward trajectory from 2012 through 2014, growing from 52,589 million to 61,689 million dollars. However, a notable reduction occurred in 2015, with total assets falling sharply to 46,414 million dollars, and a slight further decrease to 45,564 million dollars in 2016.
- Total Asset Turnover
- The total asset turnover ratio was relatively stable at 0.25 to 0.27 between 2012 and 2014, indicating consistent efficiency in generating sales from assets during this period. In 2015, the ratio decreased markedly to 0.20 and declined further to 0.19 in 2016, suggesting diminished efficiency in asset utilization corresponding with the declines in both sales revenues and total assets.
Equity Turnover
Anadarko Petroleum Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Equity turnover = Sales revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales Revenues
- The sales revenues exhibited an initial upward trend from 2012 to 2014, increasing from 13,307 million USD to 16,375 million USD. However, there was a significant decline in the subsequent years, with sales dropping to 9,486 million USD in 2015 and further to 8,447 million USD in 2016. This pattern indicates a peak in revenue in 2014 followed by a sharp contraction over the next two years.
- Stockholders’ Equity
- Stockholders’ equity showed an increase from 20,629 million USD in 2012 to 21,857 million USD in 2013. From 2013 onward, equity underwent a continuous decline, decreasing to 19,725 million USD in 2014 and then sharply falling to 12,819 million USD in 2015. By 2016, equity slightly decreased further to 12,212 million USD. Overall, this signals erosion in shareholder value across the last three years.
- Equity Turnover Ratio
- The equity turnover ratio reflects the relationship between sales revenue and stockholders’ equity. This ratio increased from 0.65 in 2012 to 0.83 in 2014, indicating improved efficiency in generating sales from equity. However, the ratio declined to 0.74 in 2015 and continued downward to 0.69 in 2016, corresponding with the declines in sales revenue and stockholders’ equity, implying a reduction in asset utilization efficiency.
- Summary of Financial Trends
- Between 2012 and 2014, the company experienced growing sales and relatively stable equity, resulting in increasing equity turnover and apparent operational efficiency improvements. Starting in 2015, the company faced material declines in sales revenues and stockholders’ equity, suggesting operational and financial challenges. The downward trend in the equity turnover ratio during 2015 and 2016 indicates diminished efficiency in utilizing equity to generate sales, reflecting the overall weakening performance in these periods.