Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
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- Selected Financial Data since 2005
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Long-term Activity Ratios (Summary)
Apache Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
The analysis of the financial turnover ratios over the examined quarters reveals several key trends in operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a general decline in usage efficiency from early 2012 through to mid-2014, dropping from 0.38 to 0.27. This indicates a decreasing ability to generate sales from fixed assets over this period. However, starting mid-2014, there is a modest recovery with fluctuations leading to a peak of 0.45 in the last quarter of 2015, suggesting improved asset utilization. Following this peak, the ratio decreases again into mid-2016, ending at 0.26, indicating variability and potential challenges in maintaining fixed asset productivity.
- Total Asset Turnover
- The total asset turnover ratio exhibits a consistent decreasing trend from 0.33 in the first quarter of 2012 down to 0.22 by mid-2016. This steady decline suggests diminishing efficiency in generating revenue from total assets. Slight temporary upticks around late 2014 and late 2015 do not reverse the overall downward trajectory, emphasizing a structural decline in asset utilization efficiency over the observed time frame.
- Equity Turnover
- Equity turnover starts at 0.59 in early 2012 and generally declines to 0.47 by late 2014, indicating reduced sales generation relative to shareholders' equity. Notably, in 2015 there is a sharp increase, peaking dramatically at 2.49 in the last quarter of 2015. This anomaly suggests an unusual or nonrecurring event that temporarily boosted sales relative to equity. Post this peak, the ratio declines significantly in 2016, stabilizing around 0.74, still above earlier year levels but significantly lower than the peak, reflecting normalization after the spike.
Overall, the trends show a declining efficiency in asset usage, particularly in total asset turnover, which may warrant management attention to improve asset deployment or evaluate asset base sustainability. The equity turnover spike in late 2015 requires further investigation to understand its drivers, as it represents a notable deviation from the typical pattern.
Net Fixed Asset Turnover
Apache Corp., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Oil and gas production revenues | ||||||||||||||||||||||||
| Property and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Net fixed asset turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Oil and Gas Production Revenues
- The revenues from oil and gas production show a general declining trend over the analyzed periods. Starting at 4,457 million US dollars in the first quarter of 2012, revenues fluctuate slightly within 2012 and 2013 but move downward from 2014 onward. A significant drop is observed from 2014's peak of around 3,468 million US dollars in the third quarter to only 1,087 million US dollars by the first quarter of 2016. Slight recoveries occur intermittently, but the overall pattern indicates a persistent decrease in production revenues during this interval.
- Property and Equipment, Net
- Net property and equipment values display an initial increase, rising from approximately 45,829 million US dollars in early 2012 to a peak of about 55,821 million US dollars in mid-2013. Following this peak, a marked declining trend sets in, with valuations falling sharply through 2014 and 2015, reaching a low of 14,119 million US dollars by mid-2016. A minor uptick at the end of the observed period slightly reverses this decline but does not offset the substantial decrease experienced over the term. This pattern suggests significant asset disposals, impairments, or revaluations during the later quarters.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio starts at 0.38 in the first quarter of 2012 and generally declines through the period, reaching lows around 0.26 by mid-2016. There are modest fluctuations, with slight increases observed around late 2015, where the ratio climbs to approximately 0.45 before descending again. This ratio’s volatility alongside declining revenues and net property values indicates that efficiency in utilizing fixed assets to generate sales experienced challenges, particularly during the later years.
- Overall Analysis
- The combined trends point to a period characterized by decreasing oil and gas revenues coupled with significant reductions in net property and equipment values. The diminishing net fixed asset turnover ratio further highlights potential difficulties in maintaining operational efficiency amid these declines. These patterns may reflect broader sectoral challenges, asset impairments, or strategic shifts impacting investment and production levels.
Total Asset Turnover
Apache Corp., total asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Oil and gas production revenues | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Total asset turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Oil and gas production revenues
- The quarterly oil and gas production revenues exhibit a declining trend over the analyzed period. Starting from a high of $4,457 million in March 2012, revenues generally decrease across subsequent quarters, reaching a low of $1,087 million in March 2016. Notably, there is a brief increase observed in June 2016 to $1,386 million following the lowest point. The decline appears persistent, with significant drops occurring from late 2014 onwards, indicating potential challenges in production volumes, pricing, or market conditions during that timeframe.
- Total assets
- Total assets show an initial upward trajectory from $53,237 million in March 2012 to a peak near $61,792 million in March 2013. This is followed by a relatively stable period with minor fluctuations until late 2014, after which total assets begin a pronounced decline reaching approximately $18,842 million by March 2016. A modest recovery is noted in June 2016, with assets slightly increasing to $24,346 million. The overall pattern suggests significant asset divestitures, impairments, or revaluations occurring in the latter years, impacting the asset base substantially.
- Total asset turnover
- The total asset turnover ratio trends downward from 0.33 in March 2012 to a low range around 0.22 to 0.25 in the subsequent years. There is a minor recovery phase between late 2014 and early 2016 where the ratio rises to approximately 0.34, indicating a temporary improvement in asset utilization efficiency. However, by mid-2016, the ratio declines again to 0.22. This fluctuation may reflect changes in operational efficiency, market demand, or asset base adjustments affecting the company’s ability to generate revenue relative to its asset size.
Equity Turnover
Apache Corp., equity turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Oil and gas production revenues | ||||||||||||||||||||||||
| Total Apache shareholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Equity turnover
= (Oil and gas production revenuesQ2 2016
+ Oil and gas production revenuesQ1 2016
+ Oil and gas production revenuesQ4 2015
+ Oil and gas production revenuesQ3 2015)
÷ Total Apache shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial trends reveals several notable patterns in revenue, equity, and efficiency ratios over the period studied.
- Oil and Gas Production Revenues
-
Revenues from oil and gas production demonstrated variability throughout the reported periods, peaking near the end of 2012 with a high of approximately 4,393 million US dollars. Following this peak, revenues showed a general downward trend. Between early 2013 and mid-2014, the revenues hovered in the range of roughly 2,900 to 3,700 million dollars but displayed a marked decline starting in 2014. By early 2016, revenues had decreased significantly to values around 1,000 to 1,300 million dollars, indicating a substantial contraction in production revenues over the observed timeframe.
- Total Shareholders’ Equity
-
Shareholders' equity exhibited a steady increase from early 2012 through the end of 2013, moving from approximately 29,715 million to over 33,000 million US dollars. However, post-2013, the equity showed a pronounced decline, falling sharply in 2014 and 2015. By the first half of 2016, equity reached notably lower levels, dropping to figures below 8,000 million US dollars. This sustained decrease reflects a significant erosion of equity capitalization within the company during this period.
- Equity Turnover Ratio
-
The equity turnover ratio started at a moderate level, just below 0.6, indicating a certain level of efficiency in using shareholders' equity to generate revenues. Through 2012 and 2013, this ratio gradually decreased and remained under 0.5 by the end of 2013, suggesting declining efficiency. Unexpectedly, in late 2015 and early 2016, the ratio spiked sharply to 2.49, followed by a decline to around 0.7. This transient surge likely reflects the impact of the significant reduction in equity rather than an immediate improvement in operational efficiency, as the denominator (equity) decreased substantially.
In summary, the company experienced declining oil and gas revenues accompanied by a substantial drawdown in shareholders' equity. While the equity turnover ratio fluctuated, its peak corresponds with the equity reduction, indicating that operational output relative to equity capital varied significantly, mostly influenced by changes in equity levels rather than revenue growth. The financial trends suggest challenges in maintaining revenue streams and capital base stability throughout the reported periods.