Apache Corp. (NYSE:APA)

Return on Assets (ROA)

The Return on Assets indicated a decline over the analyzed period. Starting at 8.81% in 2011, it decreased significantly to 3.29% in 2012 and showed a slight recovery to 3.62% in 2013. However, the measure turned negative in 2014 at -9.66%, with a substantial deterioration in 2015 reaching -122.7%. This suggests worsening efficiency in asset utilization to generate profits, culminating in considerable losses by the end of the period.

Financial Leverage

Financial Leverage exhibited an increasing trend from 2011 to 2015. It began at a ratio of 1.8 in 2011, rose modestly to 1.94 in 2012, and slightly decreased to 1.85 in 2013. Subsequently, it increased more markedly to 2.16 in 2014 and then surged to 7.34 in 2015. This indicates a growing reliance on debt financing, particularly in the final year, which may heighten financial risk.

Return on Equity (ROE)

Return on Equity experienced a pattern similar to ROA but with more pronounced volatility. It started at 15.81% in 2011, dropped sharply to 6.39% in 2012, and slightly improved to 6.68% in 2013. The ROE then turned negative to -20.83% in 2014 and dramatically declined further to -900.97% in 2015. This trajectory reflects increasing losses relative to shareholders' equity, exacerbated by the heightened financial leverage, indicating significant erosion of shareholder value over the period.

Net Profit Margin

The net profit margin exhibited a considerable decline over the five-year period. Initially, it stood at 27.27% and decreased sharply to 11.81% in the subsequent year. A slight recovery to 13.61% was observed in the third year, followed by a significant drop into negative territory, reaching -39.3% and eventually plummeting further to -362.2% by the final year. This indicates a transition from profitability to substantial losses, suggesting escalating operational or financial difficulties.

Asset Turnover

The asset turnover ratio experienced a gradual decline from 0.32 to 0.25 over the first four years, indicating decreasing efficiency in generating revenue from assets. However, in the last year, the ratio increased sharply to 0.34, suggesting an improvement in asset utilization despite other financial challenges in the same period.

Financial Leverage

Financial leverage showed a steady increase initially, rising from 1.8 to 2.16 during the first four years. In the final year, leverage escalated dramatically to 7.34, indicating a significant rise in the company's use of debt relative to equity. This heightened leverage level may have contributed to increased financial risk and the observed deterioration in profitability and returns.

Return on Equity (ROE)

Return on equity mirrored the patterns observed in net profit margin, declining notably throughout the period. Starting at 15.81%, ROE fell to 6.39% and remained relatively flat in the third year. It then turned negative, recording -20.83% in the fourth year and collapsing to an extreme negative -900.97% by the last year. This trend reflects severe erosion of shareholder value, likely attributable to the combined effects of declining profitability and increased financial leverage.

Tax Burden

The tax burden ratio showed variability over the years, decreasing significantly from 0.57 in 2011 to 0.41 in 2012, then rising again to 0.54 in 2013. Data for subsequent years is missing, preventing further analysis for those periods.

Interest Burden

This ratio remained relatively stable and high from 2011 through 2013, declining slightly from 0.98 to 0.95, indicating a minor increase in interest expense impact. Subsequent years lack data.

EBIT Margin

There is a clear downward trend in EBIT margin, starting at a strong positive 49.16% in 2011 and dramatically decreasing to 29.81% in 2012, then to 26.56% in 2013. It turned negative in 2014 with -26.4%, followed by a substantial further decline to -443.82% in 2015, indicating severe operating losses in the last two years.

Asset Turnover

Asset turnover generally declined from 0.32 in 2011 to 0.25 in 2014, showing a decrease in the efficiency of asset use in generating sales. However, there was a notable increase to 0.34 in 2015, suggesting an improvement in asset utilization during that year.

Financial Leverage

Financial leverage maintained moderate levels between 1.8 and 2.16 from 2011 to 2014. In 2015 there was a sharp increase to 7.34, indicating a significant rise in debt or other liabilities relative to equity, which implies increased financial risk.

Return on Equity (ROE)

ROE showed a declining trend beginning at 15.81% in 2011, dropping sharply to around 6.39% and 6.68% in the next two years. The figure turned negative sharply in 2014 at -20.83%, and then plummeted drastically to -900.97% in 2015, demonstrating an extreme deterioration in shareholder value and profitability.

Net Profit Margin

The net profit margin demonstrated a declining trend over the observed period. Beginning at a positive 27.27% in 2011, it decreased significantly to 11.81% in 2012, followed by a slight recovery to 13.61% in 2013. However, a sharp decline occurred in 2014, with the margin becoming negative at -39.3%, and further deteriorated dramatically in 2015, reaching -362.2%. This indicates a severe worsening in profitability in the last two years of the period, suggesting either increased costs, reduced revenues, or both.

Asset Turnover

Asset turnover showed a generally decreasing trend from 2011 to 2014, moving from 0.32 to 0.25. This points to a declining efficiency in using assets to generate sales during that period. In 2015, however, asset turnover rose sharply to 0.34, surpassing the initial value recorded in 2011. This rebound may indicate improved asset utilization or increased sales relative to asset base during the final year.

Return on Assets (ROA)

The return on assets mirrored the trend observed in profitability measures. ROA started at 8.81% in 2011 and declined consistently to 3.29% in 2012 and 3.62% in 2013. A major negative shift occurred in 2014, with ROA falling to -9.66%, and a profound further decline to -122.7% in 2015. These figures indicate that the company experienced significant losses relative to its asset base towards the end of the period, reflecting poor asset profitability and substantial financial distress.

The financial data reveals notable trends over the period from 2011 to 2015, highlighting significant fluctuations in profitability and operational efficiency indicators.

Tax Burden

The tax burden ratio shows a marked decline from 0.57 in 2011 to 0.41 in 2012, then a recovery to 0.54 in 2013. The data for 2014 and 2015 is not available, which limits further analysis on this measure.

Interest Burden

This ratio remains relatively stable but shows a gradual decrease from 0.98 in 2011 to 0.95 in 2013, suggesting a slight improvement in covering interest expenses from operating income before interest and taxes. Data beyond 2013 is missing.

EBIT Margin

The EBIT margin exhibits a sharp negative trend starting in 2013, declining from 26.56% to -26.4% in 2014, and plunging further to -443.82% in 2015. This indicates a significant deterioration in operating profitability, turning from solid positive margins to large operating losses by the end of the period.

Asset Turnover

This ratio demonstrates a steady decline from 0.32 in 2011 to 0.25 in 2014, indicating that the company’s efficiency in generating sales from assets was weakening. Interestingly, there is an increase to 0.34 in 2015, which may reflect improved asset utilization despite other negative trends.

Return on Assets (ROA)

The ROA mirrors the deterioration seen in the EBIT margin, starting at 8.81% in 2011 and weakening to 3.62% by 2013. It then turns sharply negative at -9.66% in 2014 and plunges to -122.7% in 2015. This trend highlights a significant erosion of asset profitability, culminating in substantial losses relative to asset base in the later years.

Overall, the data suggests a period of declining operational profitability and asset efficiency, with particularly severe financial challenges emerging in 2014 and 2015. The increase in asset turnover in the final year contrasts with the broader negative trends and may warrant further investigation to understand its underlying causes and implications.

Tax Burden

The tax burden ratio demonstrates variability over the observed period. It declined sharply from 0.57 in 2011 to 0.41 in 2012, indicating a reduced tax impact on pre-tax earnings. In 2013, it increased again to 0.54, nearing the initial level. No data is available for subsequent years, precluding further trend analysis.

Interest Burden

The interest burden ratio shows a slight but consistent downward trend from 0.98 in 2011 to 0.95 in 2013, signifying a modest increase in interest expenses relative to earnings before interest and taxes during these years. Data is not provided for later years.

EBIT Margin

The EBIT margin experienced a significant decline over the period. It started at a strong level of 49.16% in 2011, then dropped notably to 29.81% in 2012, and further to 26.56% in 2013. The margin turned negative in 2014 at -26.4%, indicating operational losses, and deteriorated dramatically to -443.82% in 2015, which suggests severe operational challenges or extraordinary items negatively impacting earnings.

Net Profit Margin

The net profit margin follows a downward trajectory consistent with EBIT margin trends. Beginning at 27.27% in 2011, it fell to 11.81% in 2012, then slightly recovered to 13.61% in 2013. The margin then turned sharply negative, dropping to -39.3% in 2014 and further plunging to -362.2% in 2015. This indicates substantial overall losses after all expenses and taxes in the latter years, reflecting declining profitability and possibly significant non-operational costs or write-downs.