Return on Assets (ROA)
since 2005
Calculation
Anadarko Petroleum Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -6.74% | = | 100 | × | (3,071) | ÷ | 45,564) |
| Dec 31, 2015 | -14.42% | = | 100 | × | (6,692) | ÷ | 46,414) |
| Dec 31, 2014 | -2.84% | = | 100 | × | (1,750) | ÷ | 61,689) |
| Dec 31, 2013 | 1.44% | = | 100 | × | 801) | ÷ | 55,781) |
| Dec 31, 2012 | 4.55% | = | 100 | × | 2,391) | ÷ | 52,589) |
| Dec 31, 2011 | -5.12% | = | 100 | × | (2,649) | ÷ | 51,779) |
| Dec 31, 2010 | 1.48% | = | 100 | × | 761) | ÷ | 51,559) |
| Dec 31, 2009 | -0.27% | = | 100 | × | (135) | ÷ | 50,123) |
| Dec 31, 2008 | 6.67% | = | 100 | × | 3,261) | ÷ | 48,923) |
| Dec 31, 2007 | 7.80% | = | 100 | × | 3,781) | ÷ | 48,481) |
| Dec 31, 2006 | 8.25% | = | 100 | × | 4,854) | ÷ | 58,844) |
| Dec 31, 2005 | 10.94% | = | 100 | × | 2,471) | ÷ | 22,588) |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2016 is characterized by a transition from steady profitability to extreme volatility, culminating in a period of significant capital impairment. The Return on Assets (ROA) serves as a primary indicator of this decline, shifting from a peak of 10.94% in 2005 to a severe low of -14.42% in 2015.
- Early Growth and Margin Compression (2005–2008)
- A consistent downward trend in ROA is observed during this period, declining from 10.94% to 6.67%. This compression occurred despite net income remaining positive. A significant increase in total assets, which rose from 22,588 million US$ in 2005 to 58,844 million US$ in 2006, indicates an aggressive expansion of the asset base that outpaced net income growth, thereby reducing overall asset efficiency.
- Period of Operational Instability (2009–2013)
- The middle period is marked by erratic fluctuations in both net income and ROA. The company experienced alternating years of losses and gains, with ROA swinging from -0.27% in 2009 to 4.55% in 2012, before dropping again to 1.44% in 2013. This volatility suggests an inability to maintain a stable return on the invested asset base, which remained relatively stagnant around the 50,000 to 55,000 million US$ range.
- Severe Financial Contraction (2014–2016)
- A critical downturn is evident starting in 2014, coinciding with a peak in total assets of 61,689 million US$. The subsequent years show a sharp deterioration in profitability, with net losses reaching 6,692 million US$ in 2015, resulting in a trough ROA of -14.42%. Although there was a partial recovery in ROA to -6.74% in 2016, the period is defined by substantial asset write-downs, as total assets decreased from their 2014 peak to 45,564 million US$ by 2016.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Anadarko Petroleum Corp., ROA, long-term trends, comparison to competitors
| Anadarko Petroleum Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2016 | -6.74% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | -14.42% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | -2.84% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 1.44% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | 4.55% | 11.24% | 7.19% | 13.45% |
| Dec 31, 2011 | -5.12% | 12.84% | 8.12% | 12.40% |
| Dec 31, 2010 | 1.48% | 10.30% | 7.27% | 10.07% |
| Dec 31, 2009 | -0.27% | 6.37% | 3.18% | 8.26% |
| Dec 31, 2008 | 6.67% | 14.85% | -11.90% | 19.83% |
| Dec 31, 2007 | 7.80% | 12.56% | 6.69% | 16.78% |
| Dec 31, 2006 | 8.25% | 12.92% | 9.44% | 18.04% |
| Dec 31, 2005 | 10.94% | 11.20% | 12.64% | 17.34% |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Anadarko Petroleum Corp., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Anadarko Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2016 | -6.74% | 0.55% |
| Dec 31, 2015 | -14.42% | 2.33% |
| Dec 31, 2014 | -2.84% | 8.01% |
| Dec 31, 2013 | 1.44% | 8.79% |
| Dec 31, 2012 | 4.55% | 11.62% |
| Dec 31, 2011 | -5.12% | 11.59% |
| Dec 31, 2010 | 1.48% | 9.45% |
| Dec 31, 2009 | -0.27% | 6.29% |
| Dec 31, 2008 | 6.67% | 9.80% |
| Dec 31, 2007 | 7.80% | 12.52% |
| Dec 31, 2006 | 8.25% | 13.98% |
| Dec 31, 2005 | 10.94% | 14.45% |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Anadarko Petroleum Corp., ROA, long-term trends, comparison to industry (energy)
| Anadarko Petroleum Corp. | Energy | |
|---|---|---|
| Dec 31, 2016 | -6.74% | 0.27% |
| Dec 31, 2015 | -14.42% | 2.39% |
| Dec 31, 2014 | -2.84% | 8.02% |
| Dec 31, 2013 | 1.44% | 8.90% |
| Dec 31, 2012 | 4.55% | 11.40% |
| Dec 31, 2011 | -5.12% | 11.40% |
| Dec 31, 2010 | 1.48% | 9.36% |
| Dec 31, 2009 | -0.27% | 6.46% |
| Dec 31, 2008 | 6.67% | 10.21% |
| Dec 31, 2007 | 7.80% | 12.80% |
| Dec 31, 2006 | 8.25% | 14.07% |
| Dec 31, 2005 | 10.94% | 14.36% |
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), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).