Stock Analysis on Net
Stock Analysis on Net

Apache Corp. (NYSE:APA)

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Apache Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Adjustment to Total Assets
Total assets (as reported) 18,842 55,952 61,637 60,737 52,051
Less: Goodwill 87 87 1,369 1,289 1,114
Total assets (adjusted) 18,755 55,865 60,268 59,448 50,937
Adjustment to Total Apache Shareholders’ Equity
Total Apache shareholders’ equity (as reported) 2,566 25,937 33,396 31,331 28,993
Less: Goodwill 87 87 1,369 1,289 1,114
Total Apache shareholders’ equity (adjusted) 2,479 25,850 32,027 30,042 27,879
Adjustment to Net Income (loss) Attributable To Apache Shareholders
Net income (loss) attributable to Apache shareholders (as reported) (23,119) (5,403) 2,232 2,001 4,584
Add: Goodwill impairments — 1,282 — — —
Net income (loss) attributable to Apache shareholders (adjusted) (23,119) (4,121) 2,232 2,001 4,584

Based on: 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), 10-K (reporting date: 2011-12-31).

Apache Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Apache Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Net Profit Margin
Reported net profit margin -362.20% -39.30% 13.61% 11.81% 27.27%
Adjusted net profit margin -362.20% -29.97% 13.61% 11.81% 27.27%
Total Asset Turnover
Reported total asset turnover 0.34 0.25 0.27 0.28 0.32
Adjusted total asset turnover 0.34 0.25 0.27 0.29 0.33
Financial Leverage
Reported financial leverage 7.34 2.16 1.85 1.94 1.80
Adjusted financial leverage 7.57 2.16 1.88 1.98 1.83
Return on Equity (ROE)
Reported ROE -900.97% -20.83% 6.68% 6.39% 15.81%
Adjusted ROE -932.59% -15.94% 6.97% 6.66% 16.44%
Return on Assets (ROA)
Reported ROA -122.70% -9.66% 3.62% 3.29% 8.81%
Adjusted ROA -123.27% -7.38% 3.70% 3.37% 9.00%

Based on: 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), 10-K (reporting date: 2011-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Apache Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apache Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Apache Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Apache Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apache Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.

Apache Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Profitability Ratio
Net profit margin1 -362.20% -39.30% 13.61% 11.81% 27.27%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (23,119) (4,121) 2,232 2,001 4,584
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Profitability Ratio
Adjusted net profit margin2 -362.20% -29.97% 13.61% 11.81% 27.27%

Based on: 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), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Apache shareholders ÷ Oil and gas production revenues
= 100 × -23,119 ÷ 6,383 = -362.20%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Oil and gas production revenues
= 100 × -23,119 ÷ 6,383 = -362.20%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Apache Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Total assets 18,842 55,952 61,637 60,737 52,051
Activity Ratio
Total asset turnover1 0.34 0.25 0.27 0.28 0.32
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Adjusted total assets 18,755 55,865 60,268 59,448 50,937
Activity Ratio
Adjusted total asset turnover2 0.34 0.25 0.27 0.29 0.33

Based on: 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), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Total asset turnover = Oil and gas production revenues ÷ Total assets
= 6,383 ÷ 18,842 = 0.34

2 Adjusted total asset turnover = Oil and gas production revenues ÷ Adjusted total assets
= 6,383 ÷ 18,755 = 0.34

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apache Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Total assets 18,842 55,952 61,637 60,737 52,051
Total Apache shareholders’ equity 2,566 25,937 33,396 31,331 28,993
Solvency Ratio
Financial leverage1 7.34 2.16 1.85 1.94 1.80
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 18,755 55,865 60,268 59,448 50,937
Adjusted total Apache shareholders’ equity 2,479 25,850 32,027 30,042 27,879
Solvency Ratio
Adjusted financial leverage2 7.57 2.16 1.88 1.98 1.83

Based on: 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), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Financial leverage = Total assets ÷ Total Apache shareholders’ equity
= 18,842 ÷ 2,566 = 7.34

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Apache shareholders’ equity
= 18,755 ÷ 2,479 = 7.57

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Apache Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Total Apache shareholders’ equity 2,566 25,937 33,396 31,331 28,993
Profitability Ratio
ROE1 -900.97% -20.83% 6.68% 6.39% 15.81%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (23,119) (4,121) 2,232 2,001 4,584
Adjusted total Apache shareholders’ equity 2,479 25,850 32,027 30,042 27,879
Profitability Ratio
Adjusted ROE2 -932.59% -15.94% 6.97% 6.66% 16.44%

Based on: 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), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROE = 100 × Net income (loss) attributable to Apache shareholders ÷ Total Apache shareholders’ equity
= 100 × -23,119 ÷ 2,566 = -900.97%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Adjusted total Apache shareholders’ equity
= 100 × -23,119 ÷ 2,479 = -932.59%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Apache Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Total assets 18,842 55,952 61,637 60,737 52,051
Profitability Ratio
ROA1 -122.70% -9.66% 3.62% 3.29% 8.81%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (23,119) (4,121) 2,232 2,001 4,584
Adjusted total assets 18,755 55,865 60,268 59,448 50,937
Profitability Ratio
Adjusted ROA2 -123.27% -7.38% 3.70% 3.37% 9.00%

Based on: 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), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROA = 100 × Net income (loss) attributable to Apache shareholders ÷ Total assets
= 100 × -23,119 ÷ 18,842 = -122.70%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Adjusted total assets
= 100 × -23,119 ÷ 18,755 = -123.27%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apache Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.