Total Asset Turnover
since 2005
Calculation
Apache Corp., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Oil and gas production revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.34 | = | 6,383) | ÷ | 18,842) |
| Dec 31, 2014 | 0.25 | = | 13,749) | ÷ | 55,952) |
| Dec 31, 2013 | 0.27 | = | 16,402) | ÷ | 61,637) |
| Dec 31, 2012 | 0.28 | = | 16,947) | ÷ | 60,737) |
| Dec 31, 2011 | 0.32 | = | 16,810) | ÷ | 52,051) |
| Dec 31, 2010 | 0.28 | = | 12,183) | ÷ | 43,425) |
| Dec 31, 2009 | 0.30 | = | 8,574) | ÷ | 28,186) |
| Dec 31, 2008 | 0.42 | = | 12,328) | ÷ | 29,186) |
| Dec 31, 2007 | 0.35 | = | 9,962) | ÷ | 28,635) |
| Dec 31, 2006 | 0.33 | = | 8,074) | ÷ | 24,308) |
| Dec 31, 2005 | 0.39 | = | 7,457) | ÷ | 19,272) |
Based on: 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 asset turnover ratio for the period between 2005 and 2015 reflects a general long-term decline in operational efficiency, followed by a sharp structural correction in the final year of the sequence. The ratio began at 0.39 in 2005 and reached a period low of 0.25 by 2014, indicating that the company generated progressively less revenue per dollar of assets held during this decade.
- Asset Base Expansion and Revenue Lag
- Between 2005 and 2013, total assets grew substantially from US$ 19,272 million to a peak of US$ 61,637 million. While oil and gas production revenues also increased, peaking at US$ 16,947 million in 2012, the growth in the asset base significantly outpaced revenue growth. This divergence is evidenced by the steady decline in the turnover ratio from 0.42 in 2008 to 0.27 in 2013, suggesting that the capital investments made during this period did not yield a proportional increase in top-line revenue.
- Efficiency Volatility
- The data shows distinct phases of efficiency. An initial period of relative stability occurred between 2005 and 2008, with the ratio fluctuating between 0.33 and 0.42. A subsequent period of deterioration is observed from 2010 to 2014, where the ratio consistently trended downward from 0.28 to 0.25, marking the lowest point of asset utilization in the analyzed timeframe.
- 2015 Structural Shift
- In 2015, a significant reversal occurred as the asset turnover ratio rose to 0.34. This improvement was not driven by revenue growth—as production revenues declined sharply to US$ 6,383 million—but rather by a massive reduction in the total asset base, which fell from US$ 55,952 million to US$ 18,842 million. The contraction of assets was more severe than the decline in revenue, resulting in a mathematical increase in the turnover ratio despite a decline in overall scale.
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Comparison to Competitors
Apache Corp., total asset turnover, long-term trends, comparison to competitors
| Apache Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2015 | 0.34 | 0.49 | 0.30 | 0.77 |
| Dec 31, 2014 | 0.25 | 0.75 | 0.45 | 1.13 |
| Dec 31, 2013 | 0.27 | 0.87 | 0.46 | 1.21 |
| Dec 31, 2012 | 0.28 | 0.99 | 0.49 | 1.36 |
| Dec 31, 2011 | 0.32 | 1.17 | 1.60 | 1.41 |
| Dec 31, 2010 | 0.28 | 1.07 | 1.21 | 1.22 |
| Dec 31, 2009 | 0.30 | 1.02 | 0.98 | 1.29 |
| Dec 31, 2008 | 0.42 | 1.64 | 1.69 | 2.02 |
| Dec 31, 2007 | 0.35 | 1.44 | 1.05 | 1.61 |
| Dec 31, 2006 | 0.33 | 1.54 | 1.11 | 1.67 |
| Dec 31, 2005 | 0.39 | 1.54 | 1.68 | 1.72 |
Based on: 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)
Apache Corp., total asset turnover, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Apache Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2015 | 0.34 | 0.60 |
| Dec 31, 2014 | 0.25 | 0.88 |
| Dec 31, 2013 | 0.27 | 0.97 |
| Dec 31, 2012 | 0.28 | 1.08 |
| Dec 31, 2011 | 0.32 | 1.38 |
| Dec 31, 2010 | 0.28 | 1.18 |
| Dec 31, 2009 | 0.30 | 1.12 |
| Dec 31, 2008 | 0.42 | 1.81 |
| Dec 31, 2007 | 0.35 | 1.39 |
| Dec 31, 2006 | 0.33 | 1.46 |
| Dec 31, 2005 | 0.39 | 1.66 |
Based on: 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)
Apache Corp., total asset turnover, long-term trends, comparison to industry (energy)
| Apache Corp. | Energy | |
|---|---|---|
| Dec 31, 2015 | 0.34 | 0.59 |
| Dec 31, 2014 | 0.25 | 0.87 |
| Dec 31, 2013 | 0.27 | 0.94 |
| Dec 31, 2012 | 0.28 | 1.05 |
| Dec 31, 2011 | 0.32 | 1.33 |
| Dec 31, 2010 | 0.28 | 1.13 |
| Dec 31, 2009 | 0.30 | 1.10 |
| Dec 31, 2008 | 0.42 | 1.76 |
| Dec 31, 2007 | 0.35 | 1.37 |
| Dec 31, 2006 | 0.33 | 1.43 |
| Dec 31, 2005 | 0.39 | 1.63 |
Based on: 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).