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 data reveals several key trends regarding profitability, equity, and return on equity (ROE) over the period from 2005 through 2016.
- Net Income (Loss)
- The net income demonstrates significant volatility throughout the period. After a strong increase from US$2,471 million in 2005 to a peak of US$4,854 million in 2006, net income fell to US$3,781 million in 2007 and US$3,261 million in 2008. A notable loss occurred in 2009 at -US$135 million, followed by modest recovery in 2010 (US$761 million). The company then experienced a major loss in 2011 (–US$2,649 million), rebounded somewhat in 2012 (US$2,391 million), but again returned to losses in subsequent years with the lowest point in 2015 at –US$6,692 million and continuing losses through 2016 at –US$3,071 million.
- Stockholders’ Equity
- Stockholders’ equity grew substantially from a low base of US$527 million in 2005 to a high of US$21,857 million in 2013. However, this upward trend reversed after 2013, declining to US$12,212 million by 2016. The period between 2010 and 2013 shows relatively stable and elevated equity levels, while the sharp decline post-2013 suggests significant erosion in the company’s capital base during the latter years.
- Return on Equity (ROE)
- ROE exhibits extreme fluctuations, particularly in the early years. The extraordinarily high ROE of 468.88% in 2005 likely reflects the very low equity base at that time, as the equity figure was minimal compared to net income. Subsequently, ROE stabilized to more moderate but still volatile levels, peaking at 32.55% in 2006 and then declining steadily to a negative -0.68% in 2009. The company managed a slight recovery to 3.68% in 2010 but then faced a significant downturn with negative returns through most of the remaining years, reaching a low of –52.2% in 2015. The negative ROE corresponds with consistent net losses and declining equity in the later years.
Overall, the data reflects a company that experienced strong profitability and equity growth in the mid-2000s followed by increasing financial difficulties and volatility. After peaking around 2013, profitability and equity both declined markedly. The persistent negative ROE in recent years signals ongoing challenges in generating shareholder returns, likely linked to the sustained net losses and reduction in equity.
Comparison to Competitors
Anadarko Petroleum Corp., ROE, long-term trends, comparison to competitors
| Anadarko Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2016 | -25.15% | -0.34% | -10.34% | 4.69% | -2.67% |
| Dec 31, 2015 | -52.20% | 3.00% | -11.14% | 9.45% | -32.15% |
| Dec 31, 2014 | -8.87% | 12.41% | 13.23% | 18.65% | 1.76% |
| Dec 31, 2013 | 3.66% | 14.37% | 17.58% | 18.72% | 13.69% |
| Dec 31, 2012 | 11.59% | 19.18% | 17.56% | 27.06% | 11.49% |
| Dec 31, 2011 | -14.63% | 22.16% | 19.07% | 26.59% | 18.00% |
| Dec 31, 2010 | 3.68% | 18.10% | 16.57% | 20.74% | 13.95% |
| Dec 31, 2009 | -0.68% | 11.41% | 7.78% | 17.44% | 10.02% |
| Dec 31, 2008 | 17.35% | 27.62% | -30.81% | 40.03% | 25.12% |
| Dec 31, 2007 | 23.11% | 24.24% | 13.36% | 33.35% | 23.66% |
| Dec 31, 2006 | 32.55% | 24.86% | 18.82% | 34.70% | 21.80% |
| Dec 31, 2005 | 468.88% | 22.50% | 25.66% | 32.50% | 35.13% |
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% | 0.85% |
| Dec 31, 2015 | -52.20% | 2.19% |
| Dec 31, 2014 | -8.87% | 14.23% |
| Dec 31, 2013 | 3.66% | 16.51% |
| Dec 31, 2012 | 11.59% | 21.54% |
| Dec 31, 2011 | -14.63% | 23.02% |
| Dec 31, 2010 | 3.68% | 18.52% |
| Dec 31, 2009 | -0.68% | 12.77% |
| Dec 31, 2008 | 17.35% | 20.92% |
| Dec 31, 2007 | 23.11% | 24.65% |
| Dec 31, 2006 | 32.55% | 26.83% |
| Dec 31, 2005 | 468.88% | 28.57% |
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% | 0.36% |
| Dec 31, 2015 | -52.20% | 2.49% |
| Dec 31, 2014 | -8.87% | 14.24% |
| Dec 31, 2013 | 3.66% | 16.56% |
| Dec 31, 2012 | 11.59% | 21.07% |
| Dec 31, 2011 | -14.63% | 22.48% |
| Dec 31, 2010 | 3.68% | 18.13% |
| Dec 31, 2009 | -0.68% | 12.99% |
| Dec 31, 2008 | 17.35% | 21.56% |
| Dec 31, 2007 | 23.11% | 25.12% |
| Dec 31, 2006 | 32.55% | 27.14% |
| Dec 31, 2005 | 468.88% | 28.59% |
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).