Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Apache Corp., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apache Corp. gross profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apache Corp. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apache Corp. net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apache Corp. ROE deteriorated from 2013 to 2014 and from 2014 to 2015. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Apache Corp. ROA deteriorated from 2013 to 2014 and from 2014 to 2015. |
Gross Profit Margin
Apache Corp., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 4,318) | 10,997) | 13,049) | 13,676) | 13,909) | |
| Oil and gas production revenues | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 67.65% | 79.98% | 79.56% | 80.70% | 82.74% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Gross profit margin = 100 × Gross profit ÷ Oil and gas production revenues
= 100 × 4,318 ÷ 6,383 = 67.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apache Corp. gross profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Operating Profit Margin
Apache Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | (27,910) | (2,878) | 4,738) | 4,911) | 8,173) | |
| Oil and gas production revenues | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -437.26% | -20.93% | 28.89% | 28.98% | 48.62% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Oil and gas production revenues
= 100 × -27,910 ÷ 6,383 = -437.26%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apache Corp. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Net Profit Margin
Apache Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Net profit margin = 100 × Net income (loss) attributable to Apache shareholders ÷ Oil and gas production revenues
= 100 × -23,119 ÷ 6,383 = -362.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apache Corp. net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Return on Equity (ROE)
Apache Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
ROE = 100 × Net income (loss) attributable to Apache shareholders ÷ Total Apache shareholders’ equity
= 100 × -23,119 ÷ 2,566 = -900.97%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apache Corp. ROE deteriorated from 2013 to 2014 and from 2014 to 2015. |
Return on Assets (ROA)
Apache Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
ROA = 100 × Net income (loss) attributable to Apache shareholders ÷ Total assets
= 100 × -23,119 ÷ 18,842 = -122.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Apache Corp. ROA deteriorated from 2013 to 2014 and from 2014 to 2015. |