Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
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).
- Gross Profit Margin
- The gross profit margin remained relatively stable at around 80% during 2012 to 2014, with values of approximately 79.76%, 80.21%, and 79.74%, respectively. However, starting in 2015, there was a notable decline to 66.42%, followed by a slight further decrease to 65.67% in 2016. This downward trend indicates increasing costs or pricing pressures affecting the gross profitability of the company in the latter two years.
- Operating Profit Margin
- The operating profit margin exhibited significant volatility over the analyzed period. It started at 28.01% in 2012, declining to 22.42% in 2013, then recovering sharply to 33% in 2014. Following this peak, there was a dramatic fall into negative territory with -92.86% in 2015 and a less severe but still negative margin of -30.77% in 2016. This pattern indicates major operational challenges and possibly extraordinary losses affecting earnings before interest and taxes in the last two years.
- Net Profit Margin
- The net profit margin showed a consistent downward trend, starting positive at 17.97% in 2012, then sharply decreasing to 5.39% in 2013. It turned negative in 2014 at -10.69% and worsened significantly in 2015 and 2016 with -70.55% and -36.36%, respectively. The increasingly negative net margins reflect deteriorating overall profitability, likely influenced by both operational losses and non-operational factors such as interest expenses or tax impacts.
- Return on Equity (ROE)
- The return on equity followed a pattern aligned with the net profit margin, beginning at a positive 11.59% in 2012 and declining steadily into negative territory from 2014 onward. The ROE dropped to 3.66% in 2013, then fell sharply to -8.87% in 2014, reaching -52.2% in 2015 and improving slightly to -25.15% in 2016. This indicates severe erosion of shareholder value over the period, particularly in 2015, before a moderate recovery yet remaining negative in 2016.
- Return on Assets (ROA)
- Return on assets mirrored the declining trend observed in other profit metrics, starting from a mild 4.55% in 2012 and decreasing to 1.44% in 2013. It then fell to -2.84% in 2014, with a significant drop to -14.42% in 2015 and a partial recovery to -6.74% in 2016. This pattern suggests diminishing efficiency in asset use to generate profits, especially pronounced in the period from 2014 to 2015.
Return on Sales
Return on Investment
Gross Profit Margin
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).
1 2016 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales revenues
= 100 × 5,547 ÷ 8,447 = 65.67%
- Sales Revenues
- Sales revenues exhibited a consistent upward trend from 2012 through 2014, increasing from approximately 13,307 million USD to 16,375 million USD. However, a significant decline occurred in the subsequent years, dropping sharply to 9,486 million USD in 2015 and further to 8,447 million USD in 2016.
- Gross Profit
- Gross profit followed a similar pattern, rising from 10,613 million USD in 2012 to a peak of 13,058 million USD in 2014. Thereafter, it experienced a notable decrease, falling to 6,301 million USD in 2015 and declining further to 5,547 million USD in 2016.
- Gross Profit Margin
- Gross profit margin remained relatively stable and strong during the first three years, maintaining levels close to 80%. Starting in 2015, the margin experienced a substantial reduction, decreasing to around 66.4%, and continued with a slight decline to 65.7% in 2016. This indicates a considerable decrease in profitability relative to sales during the latter period.
- Overall Trends and Insights
- The data reveals robust growth in both sales revenues and gross profit from 2012 through 2014, suggesting favorable market conditions or operational improvements during that timeframe. The pronounced declines from 2015 onward reflect a challenging period with reduced sales volumes or pricing pressures. Additionally, the shrinking gross profit margin during the latter years points to deteriorating cost efficiency or increased cost pressures, negatively impacting overall profitability despite a lower sales base.
Operating Profit Margin
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Operating income (loss) | (2,599) | (8,809) | 5,403) | 3,333) | 3,727) | |
Sales revenues | 8,447) | 9,486) | 16,375) | 14,867) | 13,307) | |
Profitability Ratio | ||||||
Operating profit margin1 | -30.77% | -92.86% | 33.00% | 22.42% | 28.01% | |
Benchmarks | ||||||
Operating Profit Margin, Competitors2 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — |
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).
1 2016 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Sales revenues
= 100 × -2,599 ÷ 8,447 = -30.77%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income exhibited a fluctuating trend over the five-year period. It increased from $3,727 million in 2012 to a peak of $5,403 million in 2014. However, there was a sharp reversal in 2015, with an operating loss of $8,809 million, and a continued loss of $2,599 million in 2016, indicating significant operational challenges during the latter years.
- Sales Revenues
- Sales revenues showed an upward trend from 2012 to 2014, growing from $13,307 million to $16,375 million. This was followed by a marked decline in 2015 and 2016, with revenues dropping to $9,486 million and further to $8,447 million respectively. This decrease coincides with the period of operating losses, suggesting a weakening sales performance.
- Operating Profit Margin
- The operating profit margin followed a pattern consistent with operating income and sales revenues. It declined from 28.01% in 2012 to 22.42% in 2013, then improved sharply to 33% in 2014. This positive margin was reversed in 2015 and 2016, when the margin turned deeply negative at -92.86% and -30.77%, respectively. The steep negative margins indicate considerable inefficiency and possibly extraordinary expenses or impairments affecting profitability.
Net Profit Margin
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net income (loss) attributable to common stockholders | (3,071) | (6,692) | (1,750) | 801) | 2,391) | |
Sales revenues | 8,447) | 9,486) | 16,375) | 14,867) | 13,307) | |
Profitability Ratio | ||||||
Net profit margin1 | -36.36% | -70.55% | -10.69% | 5.39% | 17.97% | |
Benchmarks | ||||||
Net Profit Margin, Competitors2 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — |
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).
1 2016 Calculation
Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Sales revenues
= 100 × -3,071 ÷ 8,447 = -36.36%
2 Click competitor name to see calculations.
- Net income (loss) attributable to common stockholders
- The net income experienced a significant decline over the five-year period. Starting from a positive figure of 2,391 million US dollars in 2012, it decreased sharply to 801 million in 2013. From 2014 onwards, net income turned negative, with losses amounting to 1,750 million in 2014, worsening to a substantial loss of 6,692 million in 2015, and then slightly improving but still negative at 3,071 million in 2016. This indicates growing financial difficulties and declining profitability during this period.
- Sales revenues
- Sales revenues initially showed growth from 13,307 million US dollars in 2012 to a peak of 16,375 million in 2014. However, from 2015 onwards, sales revenues contracted sharply to 9,486 million and further declined to 8,447 million in 2016. This downward trend in sales revenues coincides with the deterioration in net income, suggesting challenges in market demand, pricing, or operational issues impacting top-line performance.
- Net profit margin
- The net profit margin followed a steep declining trajectory, starting at a healthy 17.97% in 2012 and dropping to 5.39% in 2013. The margin turned negative in 2014 at -10.69%, and worsened considerably in the subsequent years to -70.55% in 2015 and -36.36% in 2016. This decline reflects a significant drop in operational efficiency and profitability relative to sales, reinforcing the pattern of financial distress observed in net income figures.
Return on Equity (ROE)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net income (loss) attributable to common stockholders | (3,071) | (6,692) | (1,750) | 801) | 2,391) | |
Stockholders’ equity | 12,212) | 12,819) | 19,725) | 21,857) | 20,629) | |
Profitability Ratio | ||||||
ROE1 | -25.15% | -52.20% | -8.87% | 3.66% | 11.59% | |
Benchmarks | ||||||
ROE, Competitors2 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — |
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).
1 2016 Calculation
ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × -3,071 ÷ 12,212 = -25.15%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income showed a declining trend over the five-year period. It started with a positive figure of 2,391 million US dollars in 2012, sharply decreased to 801 million in 2013, and then turned negative starting 2014 with a loss of 1,750 million. The losses deepened significantly in 2015, reaching 6,692 million, and while slightly improving in 2016, the loss remained substantial at 3,071 million.
- Stockholders’ Equity
- Stockholders’ equity initially increased from 20,629 million US dollars in 2012 to 21,857 million in 2013. However, from 2014 onwards, it followed a downward trajectory, falling to 19,725 million, then sharply decreasing to 12,819 million in 2015, and further declining to 12,212 million by 2016. This reflects a significant erosion of equity over the period.
- Return on Equity (ROE)
- The return on equity mirrored the net income trend and demonstrated a steep decline over the period. Starting at a positive 11.59% in 2012, it dropped to 3.66% in 2013, turned negative at -8.87% in 2014, and fell dramatically to -52.2% in 2015. Although it improved slightly in 2016, ROE remained deeply negative at -25.15%, indicating persistent unprofitability relative to equity.
Return on Assets (ROA)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net income (loss) attributable to common stockholders | (3,071) | (6,692) | (1,750) | 801) | 2,391) | |
Total assets | 45,564) | 46,414) | 61,689) | 55,781) | 52,589) | |
Profitability Ratio | ||||||
ROA1 | -6.74% | -14.42% | -2.84% | 1.44% | 4.55% | |
Benchmarks | ||||||
ROA, Competitors2 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — |
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).
1 2016 Calculation
ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × -3,071 ÷ 45,564 = -6.74%
2 Click competitor name to see calculations.
- Net income (loss) attributable to common stockholders
- The net income displayed a significant decline over the period. It started with a strong positive figure of 2,391 million US dollars in 2012, dropped sharply in 2013 to 801 million US dollars, and moved into negative territory thereafter. The loss deepened considerably reaching -1,750 million US dollars in 2014, further worsening to -6,692 million US dollars in 2015, before improving slightly to a loss of -3,071 million US dollars in 2016.
- Total assets
- Total assets increased from 52,589 million US dollars in 2012 to a peak of 61,689 million US dollars in 2014. However, after 2014, assets decreased significantly to 46,414 million US dollars in 2015 and declined slightly further to 45,564 million US dollars in 2016.
- Return on assets (ROA)
- The return on assets followed the trend in net income, starting positively at 4.55% in 2012 and dropping substantially to 1.44% in 2013. From 2014 onwards, ROA turned negative and deteriorated substantially, recording -2.84% in 2014, -14.42% in 2015, and improving modestly to -6.74% in 2016. This indicates a marked decline in asset profitability across the period, particularly severe in 2015.