Apache Corp. (NYSE:APA)

Total Assets

Over the five-year period, both reported and adjusted total assets exhibit a rising trend initially, peaking in 2013 with values of approximately US$61.6 billion (reported) and US$60.3 billion (adjusted). Following 2013, a decline is observed, with a steeper drop occurring from 2014 to 2015, where assets fall sharply to about US$18.8 billion reported and US$18.8 billion adjusted. This indicates a significant reduction in total asset base in the latest year.

Shareholders’ Equity

Reported and adjusted shareholders' equity generally increased from 2011 through 2013, rising from roughly US$29.0 billion to about US$33.4 billion reported and from US$27.9 billion to US$32.0 billion adjusted. However, a notable decline occurs in 2014, dropping to around US$25.9 billion reported and US$25.9 billion adjusted, with a more pronounced decrease in 2015 to approximately US$2.6 billion reported and US$2.5 billion adjusted. The equity values in the final year reflect a substantial erosion of the company’s net worth.

Net Income (Loss) Attributable to Shareholders

Net income demonstrates considerable volatility throughout the period measured. Strong profitability is evident in 2011 with approximately US$4.6 billion earnings, followed by a significant decrease in 2012 to about US$2.0 billion, then a modest recovery in 2013 to around US$2.2 billion. However, the company experiences losses starting in 2014 with reported and adjusted net losses of approximately -US$5.4 billion and -US$4.1 billion respectively. The situation deteriorates sharply in 2015, with losses escalating to approximately -US$23.1 billion in both reported and adjusted figures. This marks a critical downturn in profitability.

Goodwill Adjustments

Differences between reported and goodwill-adjusted figures for total assets, shareholders’ equity, and net income are relatively minor across the years, indicating that goodwill adjustments have limited impact on the broader financial trends. The close alignment suggests consistent valuation treatment outside of goodwill adjustments.

Overall Insights

The period displays an initial growth phase followed by a marked reversal beginning in 2014. The substantial decline in total assets and equity coupled with significant net losses in the final two years suggests considerable financial stress. The magnitude of the decline in 2015, especially in equity and net income, indicates severe challenges possibly related to operational or market difficulties. The consistency of trends between reported and adjusted data confirms the robustness of these observations.

Net Profit Margin

Both reported and adjusted net profit margins started at strong positive levels in 2011, at approximately 27.27%. However, a significant decline is observed thereafter. By 2012, the margin had dropped to around 11.8%, followed by a slight recovery in 2013 to approximately 13.6%. A sharp decline occurred in 2014, turning negative to about -39.3% (reported) and -29.97% (adjusted). This downward trend intensified in 2015, reaching extreme negative values near -362.2%, indicating severe profitability challenges.

Total Asset Turnover

Total asset turnover ratios (both reported and adjusted) show a gradual decreasing trend from 2011 to 2014, dropping from roughly 0.32-0.33 to 0.25. This indicates a diminishing efficiency in asset utilization over this period. However, a rebound is seen in 2015, with the ratio increasing to 0.34, suggesting improved asset use despite the negative profitability.

Financial Leverage

Financial leverage for both reported and adjusted data displays a modest increase from 2011 through 2014, ranging between approximately 1.8 and 2.16. A dramatic increase occurs in 2015, with leverage ratios spiking sharply to around 7.34 (reported) and 7.57 (adjusted). This indicates a substantial rise in the company's use of debt or other liabilities, which could contribute to the increased financial risk.

Return on Equity (ROE)

Reported and adjusted ROE decline steadily from a strong positive level in 2011 (about 15.8% reported, 16.44% adjusted) to significantly lower values in 2012 and 2013 (near 6.4% to 7%). In 2014, this metric turns negative, with reported ROE at -20.83% and adjusted ROE at -15.94%, reflecting losses relative to equity. The trend worsens drastically in 2015, reaching deeply negative figures exceeding -900%, indicating substantial losses that have severely eroded shareholder equity.

Return on Assets (ROA)

ROA mirrors the trend observed in net profit margin and ROE. Starting strong in 2011 (8.81% reported, 9.0% adjusted), it declines through 2012 and 2013 to roughly 3.3-3.7%, indicating decreasing profitability relative to asset base. Negative returns emerge in 2014 (-9.66% reported, -7.38% adjusted), turning worse in 2015 with extremely negative ROA values around -123%, signaling significant asset write-downs or operational losses.

Net Income Trends

The reported net income attributable to shareholders showed a significant decline over the five-year period. Starting at a high of 4,584 million US dollars in 2011, it dropped sharply to 2,001 million in 2012, followed by a modest increase to 2,232 million in 2013. However, from 2014 onwards, the company experienced substantial losses, with reported net loss reaching -5,403 million in 2014 and further deteriorating to -23,119 million in 2015.

The adjusted net income, which accounts for goodwill adjustments, followed a similar trend. The values matched the reported net income from 2011 to 2013 but showed a smaller loss in 2014 at -4,121 million compared to the reported figure, indicating some impact of the adjustments. The adjusted net loss then also worsened drastically to -23,119 million in 2015, equal to the reported loss.

Net Profit Margin Analysis

The reported net profit margin mirrored the net income trend. It started at a robust 27.27% in 2011, declining significantly to 11.81% in 2012 and slightly rising to 13.61% in 2013. From 2014, the margin turned notably negative, at -39.3%, and plummeted further to -362.2% in 2015, highlighting severe profitability challenges.

The adjusted net profit margin tracked the reported margin closely from 2011 to 2013. In 2014, the adjusted margin was less negative at -29.97% compared to the reported figure, reflecting the goodwill adjustment impact. By 2015, the adjusted margin declined sharply to the same severe negative level as reported, -362.2%.

Overall Insights

The financial performance exhibited a downturn starting in 2014, with both net income and profitability margins swinging into heavy losses. The goodwill adjustments appear to moderate the 2014 losses slightly but did not affect the extreme loss levels seen in 2015. This pattern suggests deteriorating operational or market conditions and significant impairment or write-down events impacting profitability in the latter part of the period analyzed.

Total Assets

Reported total assets increased steadily from 52,051 million US dollars at the end of 2011 to a peak of 61,637 million US dollars in 2013, before declining to 18,842 million US dollars by the end of 2015. Adjusted total assets, which exclude goodwill, followed a similar pattern, increasing from 50,937 million US dollars in 2011 to 60,268 million in 2013, then decreasing sharply to 18,755 million by 2015.

Total Asset Turnover

Reported total asset turnover ratio showed a declining trend from 0.32 in 2011 to 0.25 in 2014, indicating a decrease in the efficiency of asset utilization over this period. However, there was a notable rebound to 0.34 in 2015. Adjusted total asset turnover ratios mirrored this trend precisely, starting at 0.33 in 2011, decreasing gradually to 0.25 in 2014, and increasing back to 0.34 in 2015.

Insights

The company experienced growth in asset base during the first part of the period, peaking in 2013, followed by a substantial reduction by 2015. This contraction may signify asset divestitures, impairments, or strategic repositioning. The decline in total asset turnover up to 2014 suggests diminishing efficiency in asset use, but the recovery in 2015 indicates a potential improvement in generating sales relative to asset size. The close alignment between reported and adjusted figures suggests limited impact of goodwill on overall asset composition and efficiency metrics throughout the period.

The financial data over the five-year period reveals several notable trends in the company's asset base, shareholders' equity, and financial leverage, both on a reported and goodwill-adjusted basis.

Total Assets

Reported total assets increased steadily from 2011 through 2013, rising from approximately 52.1 billion US dollars to about 61.6 billion US dollars, indicating asset growth during this period. However, from 2013 to 2015, total assets experienced a significant decline, falling sharply to 18.8 billion US dollars by the end of 2015. The goodwill-adjusted total assets followed a similar trajectory, with a gradual increase from 50.9 billion US dollars in 2011 to 60.3 billion US dollars in 2013, followed by a substantial drop to 18.8 billion US dollars in 2015. This parallel movement suggests that adjustments for goodwill had a consistent impact across the years, but the overall asset base contracted dramatically in the later years.

Shareholders’ Equity

The reported total shareholders’ equity showed growth from 28.9 billion US dollars in 2011 to a peak of 33.4 billion US dollars in 2013, reflecting an increase in net assets attributable to shareholders. However, equity levels decreased notably thereafter, falling to approximately 2.6 billion US dollars by the end of 2015. The goodwill-adjusted equity mirrored this pattern, growing from 27.9 billion US dollars to 32.0 billion US dollars between 2011 and 2013, then declining to 2.5 billion US dollars in 2015. The plunging equity figures during the final years may indicate significant losses or write-downs that adversely affected retained earnings and overall net worth.

Financial Leverage

Financial leverage ratios, both reported and adjusted, increased over the period, signaling rising reliance on debt financing relative to equity. Initially, reported leverage edged up from 1.8 in 2011 to 1.94 in 2012, then slightly decreased to 1.85 in 2013 before climbing sharply to 2.16 in 2014 and an especially pronounced increase to 7.34 by 2015. Adjusted leverage ratios followed a comparable pattern, starting at 1.83 in 2011, peaking at 1.98 in 2012, then a small decrease and stabilization at 1.88 in 2013, a jump to 2.16 in 2014, and a marked surge to 7.57 in 2015. The significant spike in leverage ratios at the end of the period reflects a dramatic reduction in equity relative to total assets, potentially increasing financial risk and highlighting changes in the company’s capital structure.

Overall, the analysis indicates an initial phase of asset and equity growth followed by a period of substantial contraction in the latter years, accompanied by a sharp increase in financial leverage. These trends suggest significant financial challenges and a shift towards higher indebtedness relative to the diminished equity base, which may have implications for the company’s financial stability and risk profile.

The financial data reveals significant fluctuations and a concerning decline in the company's profitability and equity from 2011 through 2015. Both reported and adjusted net income attributable to shareholders demonstrate a downward trend, with positive earnings in the years 2011 to 2013, followed by sharp losses commencing in 2014 and intensifying in 2015.

Net Income (Loss) Attributable to Shareholders

Reported net income decreased from $4,584 million in 2011 to $2,001 million in 2012, then showed a slight recovery to $2,232 million in 2013. However, this was followed by a substantial loss of $5,403 million in 2014 and an even larger loss of $23,119 million in 2015. Adjusted net income follows a similar pattern, with a significant loss beginning in 2014 (-$4,121 million) and deepening in 2015 (-$23,119 million), indicating that adjustments for goodwill and other items did not materially improve the financial outcome in the later years.

Total Shareholders' Equity

Reported equity increased from $28,993 million in 2011 to $33,396 million in 2013, suggesting growth or capital retention during this period. A decline is noted in 2014 to $25,937 million, with a dramatic drop to $2,566 million in 2015. Adjusted equity mirrors this trend, starting at a slightly lower base due to adjustments but following the same pattern of growth and steep decline, reaching $2,479 million by 2015.

Return on Equity (ROE)

Reported ROE reflects a decreasing trend, starting at a high of 15.81% in 2011, diminishing to around 6.4%-6.7% in 2012 and 2013, before turning negative in 2014 (-20.83%) and plummeting to an extremely negative value in 2015 (-900.97%). The adjusted ROE shows a comparable trajectory, with somewhat less pronounced negative values in 2014 (-15.94%) and 2015 (-932.59%), reinforcing the severity of losses and erosion of shareholder value in recent years.

Overall, the data portrays a period of relative stability and moderate profitability through 2013, followed by a sharp and sustained financial downturn starting in 2014. The substantial losses and declining equity in 2014 and 2015 indicate significant challenges that severely impacted the company's financial health, eroding shareholder value and resulting in deeply negative returns on equity. The similarity between reported and adjusted figures suggests that goodwill adjustments and related accounting considerations have minimal effect on the overall financial picture during this period.

Net Income

The reported net income attributable to shareholders exhibited a significant decline over the period analyzed. Starting from a positive value of 4584 million US dollars in 2011, it decreased sharply in 2012 to 2001 million and remained relatively stable at 2232 million in 2013. However, in 2014, the net income turned negative, recording a loss of 5403 million, and further deteriorated in 2015 to a substantial loss of 23119 million. The adjusted net income figures follow a similar trend, except for 2014 where the adjusted loss (-4121 million) was less severe than the reported loss, indicating some adjustments mitigated the reported losses marginally that year. Overall, there is a clear downward trajectory with increasing losses in the latter years.

Total Assets

Reported total assets increased from 52051 million US dollars in 2011 to a peak of 61637 million in 2013 before declining to 55952 million in 2014 and markedly dropping to 18842 million in 2015. Adjusted total assets show a similar pattern with slightly lower values each year, suggesting that goodwill adjustments have consistently reduced asset base figures. The notable sharp decline in assets in 2015 aligns with the period of significant net losses, indicating potential asset write-downs or disposals during that year.

Return on Assets (ROA)

The reported ROA exhibited a steep decline from a strong 8.81% in 2011 to moderate levels around 3.29% and 3.62% in 2012 and 2013 respectively. The company then experienced a marked shift into negative performance in 2014 with -9.66% and an extreme negative ROA of -122.7% in 2015, reflecting the substantial net losses relative to the asset base. Adjusted ROA values follow the same trend but show slightly better performance in 2014 (-7.38% vs. -9.66%) reflecting the impact of adjustments on profitability metrics. The data underscores a severe deterioration in asset profitability especially during the last two years.