Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Apache Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The analysis focuses on the trends observed in three turnover ratios over a series of quarterly periods from March 2011 to June 2016.
- Net Fixed Asset Turnover
- This ratio, available from March 2012 onwards, displays a general declining trend from 0.37 in early 2012 to a low around 0.27 by mid-2014. There is some fluctuation thereafter, with ratios slightly increasing to about 0.35-0.45 in late 2015 before declining again to 0.26 by mid-2016. This pattern suggests decreasing efficiency in generating revenue from fixed assets over much of the analyzed period, with temporary improvements toward the end of 2015.
- Total Asset Turnover
- From March 2012, the total asset turnover shows a gradual decline from 0.32 to 0.24 by late 2014. A modest rebound is seen thereafter, peaking near 0.34 in late 2015. However, the ratio then decreases again to 0.22 by mid-2016. This indicates an overall weakening in the company’s ability to generate sales from its total asset base, with occasional improvements that were not sustained.
- Equity Turnover
- Equity turnover starts from a higher value of 0.58 in early 2012 and follows a generally downward trajectory to about 0.47 by mid-2014. From then on, it experiences more volatility, including a sharp spike to 2.49 in late 2015, which is an outlier compared to other periods. Following this spike, the ratio settles back to around 0.74 by mid-2016. The gradual decline before the spike suggests decreasing efficiency in generating revenue from shareholder equity, while the spike likely reflects an extraordinary event or accounting adjustment affecting equity or sales. The partial reversion to lower levels post-spike implies normalization of conditions.
Overall, the turnover ratios indicate a trend of diminishing efficiency in utilizing assets and equity to generate revenues over the long term, interspersed with brief periods of recovery or irregular fluctuations. The significant spike in equity turnover toward the end of the period stands out as an anomaly requiring further investigation to understand its cause and implications.
Net Fixed Asset Turnover
Apache Corp., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Oil and gas production revenues | 1,386) | 1,087) | 1,221) | 1,572) | 1,952) | 1,638) | 2,926) | 3,468) | 3,708) | 3,647) | 3,728) | 4,409) | 4,119) | 4,146) | 4,393) | 4,141) | 3,956) | 4,457) | 4,295) | 4,282) | 4,355) | 3,878) | |||||||
| Property and equipment, net | 20,143) | 20,559) | 14,119) | 22,377) | 28,315) | 41,230) | 48,076) | 53,035) | 52,470) | 52,752) | 52,421) | 51,462) | 55,821) | 54,289) | 53,280) | 51,164) | 50,135) | 45,829) | 45,448) | 41,136) | 39,838) | 39,046) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 0.26 | 0.28 | 0.45 | 0.36 | 0.35 | 0.28 | 0.29 | 0.27 | 0.30 | 0.30 | 0.31 | 0.33 | 0.30 | 0.31 | 0.32 | 0.33 | 0.34 | 0.38 | 0.37 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Net fixed asset turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Property and equipment, net
= (1,386 + 1,087 + 1,221 + 1,572)
÷ 20,143 = 0.26
2 Click competitor name to see calculations.
The financial data indicates several notable trends over the observed periods. Oil and gas production revenues exhibit a cyclical pattern with peaks around mid-2011 and late 2013, followed by a marked decline starting from early 2014 through mid-2016. Revenues fall from highs above 4,000 million US dollars to values below 1,400 million US dollars by mid-2016, reflecting a significant downturn in production income.
The net value of property and equipment shows a general upward trend from early 2011 to late 2013, increasing from approximately 39,046 million US dollars to over 55,000 million US dollars. However, starting in early 2014, there is a pronounced reduction in this asset base, with values falling steeply to around 14,119 million US dollars by mid-2015 before slightly recovering to over 20,000 million US dollars by mid-2016. This suggests substantial asset disposals, impairments, or revaluations during this period.
The net fixed asset turnover ratio demonstrates some variability but generally remains low throughout the periods. The ratio begins at about 0.37 to 0.38 in late 2011, decreasing gradually to around 0.27 by late 2014, implying declining efficiency in generating revenues from fixed assets. Notably, there is a brief increase to approximately 0.45 in early 2016, which may reflect improved asset utilization amid lower asset levels and continuing revenue declines. Towards mid-2016, the ratio declines again near 0.26, indicating fluctuating operational efficiency.
- Oil and Gas Production Revenues
- Displayed volatility with peaks in 2011 and 2013 followed by a sustained decline starting in 2014, falling to less than one-third of earlier highs by mid-2016.
- Property and Equipment, Net
- Showed growth through 2013, then a sharp decrease indicating significant asset reductions or impairments from 2014 to 2015, with partial recovery thereafter.
- Net Fixed Asset Turnover
- Maintained a relatively low and declining trend through most of the period, suggesting diminished efficiency in asset utilization, with a temporary increase in early 2016 followed by another decline.
Overall, the data points to a period of contraction and operational challenges reflected in decreasing revenues and a shrinking asset base, coupled with fluctuating but generally low efficiency in using fixed assets to generate sales. The declines beginning in 2014 align with industry pressures impacting revenue and asset values.
Total Asset Turnover
Apache Corp., total asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Oil and gas production revenues | 1,386) | 1,087) | 1,221) | 1,572) | 1,952) | 1,638) | 2,926) | 3,468) | 3,708) | 3,647) | 3,728) | 4,409) | 4,119) | 4,146) | 4,393) | 4,141) | 3,956) | 4,457) | 4,295) | 4,282) | 4,355) | 3,878) | |||||||
| Total assets | 24,346) | 24,734) | 18,842) | 27,812) | 35,312) | 48,650) | 55,952) | 60,990) | 61,171) | 61,121) | 61,637) | 60,239) | 63,350) | 61,792) | 60,737) | 58,810) | 57,217) | 53,237) | 52,051) | 47,482) | 46,529) | 44,866) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 0.22 | 0.24 | 0.34 | 0.29 | 0.28 | 0.24 | 0.25 | 0.24 | 0.25 | 0.26 | 0.27 | 0.28 | 0.27 | 0.27 | 0.28 | 0.29 | 0.30 | 0.33 | 0.32 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Total asset turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Total assets
= (1,386 + 1,087 + 1,221 + 1,572)
÷ 24,346 = 0.22
2 Click competitor name to see calculations.
- Oil and gas production revenues
- Over the observed quarters, oil and gas production revenues exhibit a fluctuating but generally downward trend. Starting at 3,878 million USD in March 2011, revenues peaked near 4,457 million USD in the first quarter of 2012. Thereafter, values mostly declined, notably dropping substantially after 2014, falling below 2,000 million USD by early 2015 and continuing to weaken further to near 1,087 million USD by March 2016. The period from 2014 onwards reflects significant revenue contraction, indicating either reduced production volumes, lower prices, or both.
- Total assets
- Total assets increased steadily from 44,866 million USD in March 2011 to a peak around 63,350 million USD by June 2013. Following this peak, asset values remained relatively stable through the end of 2013 and early 2014, fluctuating slightly around 61,000 million USD. However, from early 2015, total assets began a sharp decline, falling to approximately 18,842 million USD by December 2015 before a modest recovery to around 24,346 million USD by mid-2016. This pattern suggests a possible asset sales, write-downs, or restructuring during 2015, reducing the asset base considerably.
- Total asset turnover
- The total asset turnover ratio, reflecting efficiency of asset use to generate revenue, generally declined from 0.32 in late 2011 to a low near 0.22 by mid-2016. Minor fluctuations occur, with a slight uptick to 0.34 in early 2016, but the prevailing trend is downward. This decrease in asset turnover indicates that the company’s ability to generate sales from its asset base weakened over time, potentially correlating with the falling production revenues and asset value changes. Periods of lower turnover suggest lagging operational efficiency or diminished market conditions.
- Overall observations
- The data reflects a company facing challenging conditions post-2014, with declining revenues and significant asset base reduction coinciding with deteriorating asset turnover ratios. Early periods show growth in both assets and revenues, but this reverses sharply from 2014 onward. These trends may indicate adverse market factors, operational difficulties, or strategic shifts affecting production capacity and asset management. The decreasing asset turnover further underlines operational efficiency concerns amidst shrinking revenues and asset levels.
Equity Turnover
Apache Corp., equity turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Oil and gas production revenues | 1,386) | 1,087) | 1,221) | 1,572) | 1,952) | 1,638) | 2,926) | 3,468) | 3,708) | 3,647) | 3,728) | 4,409) | 4,119) | 4,146) | 4,393) | 4,141) | 3,956) | 4,457) | 4,295) | 4,282) | 4,355) | 3,878) | |||||||
| Total Apache shareholders’ equity | 7,142) | 7,451) | 2,566) | 9,809) | 15,544) | 21,211) | 25,937) | 30,818) | 32,755) | 33,082) | 33,396) | 32,981) | 32,721) | 31,987) | 31,331) | 30,714) | 30,673) | 29,715) | 28,993) | 27,903) | 26,667) | 25,198) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | 0.74 | 0.78 | 2.49 | 0.82 | 0.64 | 0.55 | 0.53 | 0.47 | 0.47 | 0.48 | 0.49 | 0.52 | 0.51 | 0.52 | 0.54 | 0.55 | 0.55 | 0.59 | 0.58 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Equity turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Total Apache shareholders’ equity
= (1,386 + 1,087 + 1,221 + 1,572)
÷ 7,142 = 0.74
2 Click competitor name to see calculations.
The financial data reveals distinct trends across the reviewed periods in key performance metrics. The analysis focuses on oil and gas production revenues, shareholders' equity, and equity turnover ratio, identified as pivotal indicators of operational performance and financial health.
- Oil and Gas Production Revenues
-
The revenues exhibit considerable fluctuations with an overall downward trajectory from early 2013 through mid-2016. Initial periods show revenues generally maintaining levels around US$4,000 million to US$4,400 million, peaking in certain quarters of 2011 and 2012. However, starting from the first quarter of 2013, a consistent decrease is observed, culminating in a low point near US$1,087 million by the first quarter of 2016. This decline signifies a significant reduction in revenue-generating capacity over the four-year horizon.
- Total Apache Shareholders’ Equity
-
Shareholders’ equity demonstrates an initial upward trend from early 2011, beginning at approximately US$25,198 million and climbing steadily to a peak near US$33,396 million by the end of 2013. After this peak, equity values decline progressively, with sharper decreases noted beginning in 2014 and continuing through the first half of 2016, bottoming out close to US$2,566 million before a partial recovery to US$7,142 million by mid-2016. The early growth phase suggests accumulation of retained earnings or capital injections, while the subsequent decline may reflect asset impairments, losses, or shareholder distributions affecting equity base.
- Equity Turnover Ratio
-
The equity turnover ratio, representing revenue generation relative to shareholders’ equity, displays periodic fluctuations with an increasing trend toward the end of the dataset. Starting from a modest level around 0.58 in early 2011 (noting data presence from 2011 Q3 onwards), it gradually decreases to values near 0.47 in late 2014. A notable spike occurs in early 2016, where the ratio peaks sharply at approximately 2.49 before normalizing around 0.74 by mid-2016. This sharp peak likely correlates with the pronounced drop in equity rather than a substantial increase in revenue, signaling increased asset utilization or turnover efficiency relative to a diminished equity base during that period.
In summary, the period analyzed reflects a transition from stable or growing financial metrics to significant contraction in revenues and equity, with related impacts on financial ratios that suggest stresses in asset base and profitability. The large shifts in equity turnover further indicate changing operational efficiency or financial structuring amid these macro trends.