Return on Equity (ROE)
since 2005
Calculation
Anadarko Petroleum Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -25.15% | = | 100 | × | (3,071) | ÷ | 12,212) |
| Dec 31, 2015 | -52.20% | = | 100 | × | (6,692) | ÷ | 12,819) |
| Dec 31, 2014 | -8.87% | = | 100 | × | (1,750) | ÷ | 19,725) |
| Dec 31, 2013 | 3.66% | = | 100 | × | 801) | ÷ | 21,857) |
| Dec 31, 2012 | 11.59% | = | 100 | × | 2,391) | ÷ | 20,629) |
| Dec 31, 2011 | -14.63% | = | 100 | × | (2,649) | ÷ | 18,105) |
| Dec 31, 2010 | 3.68% | = | 100 | × | 761) | ÷ | 20,684) |
| Dec 31, 2009 | -0.68% | = | 100 | × | (135) | ÷ | 19,928) |
| Dec 31, 2008 | 17.35% | = | 100 | × | 3,261) | ÷ | 18,795) |
| Dec 31, 2007 | 23.11% | = | 100 | × | 3,781) | ÷ | 16,364) |
| Dec 31, 2006 | 32.55% | = | 100 | × | 4,854) | ÷ | 14,913) |
| Dec 31, 2005 | 468.88% | = | 100 | × | 2,471) | ÷ | 527) |
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 extreme volatility in profitability and significant fluctuations in the equity base, resulting in an unstable Return on Equity (ROE) profile. While the early part of the period showed strong positive returns, the latter years were marked by severe net losses and capital depletion.
- Initial Equity Base and ROE Normalization
- In 2005, an exceptionally high ROE of 468.88% was recorded, which is attributable to a disproportionately small equity base of 527 million USD relative to a net income of 2,471 million USD. Following a substantial increase in stockholders' equity to 14,913 million USD in 2006, the ROE normalized but entered a steady downward trend, declining to 32.55% in 2006 and further to 17.35% by 2008.
- Mid-Term Performance Volatility
- The period between 2009 and 2013 exhibited erratic returns, with ROE swinging from a loss of 0.68% in 2009 to a peak of 11.59% in 2012. Net income during this phase was inconsistent, fluctuating between losses and modest gains, while stockholders' equity generally grew, reaching a peak of 21,857 million USD in 2013.
- Capital Erosion and Severe Profitability Decline
- A sharp deterioration in financial health is observed from 2014 through 2016. Substantial net losses—culminating in a deficit of 6,692 million USD in 2015—led to a precipitous drop in ROE, which reached a low of -52.20% in 2015. This period of negative earnings coincided with a significant erosion of stockholders' equity, which contracted from its 2013 peak to 12,212 million USD by 2016.
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Comparison to Competitors
Anadarko Petroleum Corp., ROE, long-term trends, comparison to competitors
| Anadarko Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2016 | -25.15% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | -52.20% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | -8.87% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 3.66% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 11.59% | 19.18% | 17.56% | 27.06% |
| Dec 31, 2011 | -14.63% | 22.16% | 19.07% | 26.59% |
| Dec 31, 2010 | 3.68% | 18.10% | 16.57% | 20.74% |
| Dec 31, 2009 | -0.68% | 11.41% | 7.78% | 17.44% |
| Dec 31, 2008 | 17.35% | 27.62% | -30.81% | 40.03% |
| Dec 31, 2007 | 23.11% | 24.24% | 13.36% | 33.35% |
| Dec 31, 2006 | 32.55% | 24.86% | 18.82% | 34.70% |
| Dec 31, 2005 | 468.88% | 22.50% | 25.66% | 32.50% |
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., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Anadarko Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2016 | -25.15% | 1.07% |
| Dec 31, 2015 | -52.20% | 4.49% |
| Dec 31, 2014 | -8.87% | 15.37% |
| Dec 31, 2013 | 3.66% | 16.83% |
| Dec 31, 2012 | 11.59% | 22.69% |
| Dec 31, 2011 | -14.63% | 23.57% |
| Dec 31, 2010 | 3.68% | 18.98% |
| Dec 31, 2009 | -0.68% | 13.07% |
| Dec 31, 2008 | 17.35% | 20.47% |
| Dec 31, 2007 | 23.11% | 24.73% |
| Dec 31, 2006 | 32.55% | 27.20% |
| Dec 31, 2005 | 468.88% | 28.14% |
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., ROE, long-term trends, comparison to industry (energy)
| Anadarko Petroleum Corp. | Energy | |
|---|---|---|
| Dec 31, 2016 | -25.15% | 0.52% |
| Dec 31, 2015 | -52.20% | 4.61% |
| Dec 31, 2014 | -8.87% | 15.28% |
| Dec 31, 2013 | 3.66% | 16.85% |
| Dec 31, 2012 | 11.59% | 22.06% |
| Dec 31, 2011 | -14.63% | 22.94% |
| Dec 31, 2010 | 3.68% | 18.51% |
| Dec 31, 2009 | -0.68% | 13.29% |
| Dec 31, 2008 | 17.35% | 21.20% |
| Dec 31, 2007 | 23.11% | 25.23% |
| Dec 31, 2006 | 32.55% | 27.51% |
| Dec 31, 2005 | 468.88% | 28.17% |
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).