Operating Profit Margin
since 2005
Calculation
EQT Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Sales of natural gas, natural gas liquids and oil1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -20.00% | = | 100 | × | (1,360,975) | ÷ | 6,804,020) |
| Dec 31, 2020 | -33.12% | = | 100 | × | (877,666) | ÷ | 2,650,299) |
| Dec 31, 2019 | -30.39% | = | 100 | × | (1,152,110) | ÷ | 3,791,414) |
| Dec 31, 2018 | -59.27% | = | 100 | × | (2,783,124) | ÷ | 4,695,519) |
| Dec 31, 2017 | 35.19% | = | 100 | × | 932,981) | ÷ | 2,651,318) |
| Dec 31, 2016 | -17.45% | = | 100 | × | (278,300) | ÷ | 1,594,997) |
| Dec 31, 2015 | 33.31% | = | 100 | × | 563,139) | ÷ | 1,690,360) |
| Dec 31, 2014 | 40.02% | = | 100 | × | 853,395) | ÷ | 2,132,409) |
| Dec 31, 2013 | 38.28% | = | 100 | × | 654,604) | ÷ | 1,710,245) |
| Dec 31, 2012 | 28.66% | = | 100 | × | 470,528) | ÷ | 1,641,608) |
| Dec 31, 2011 | 52.52% | = | 100 | × | 861,319) | ÷ | 1,639,934) |
| Dec 31, 2010 | 35.57% | = | 100 | × | 470,479) | ÷ | 1,322,708) |
| Dec 31, 2009 | 28.10% | = | 100 | × | 356,791) | ÷ | 1,269,827) |
| Dec 31, 2008 | 29.48% | = | 100 | × | 464,806) | ÷ | 1,576,488) |
| Dec 31, 2007 | 22.89% | = | 100 | × | 311,673) | ÷ | 1,361,406) |
| Dec 31, 2006 | 29.38% | = | 100 | × | 372,523) | ÷ | 1,267,910) |
| Dec 31, 2005 | 27.42% | = | 100 | × | 343,812) | ÷ | 1,253,724) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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), 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 thousands
The operating profit margin exhibited significant volatility over the seventeen-year period, transitioning from a decade of consistent profitability to a period of sustained operational losses beginning in 2018.
- Period of Stability and Peak Performance (2005–2015)
- Between 2005 and 2015, the company generally maintained positive operating margins, with values fluctuating primarily between 22.89% and 40.02%. A notable peak occurred in 2011, when the operating profit margin reached 52.52%, the highest point in the recorded period.
- Operational Instability (2016–2017)
- The company experienced a sharp reversal in 2016, with the operating profit margin dropping to -17.45%. This was followed by a rapid recovery in 2017, where the margin returned to a positive 35.19%, indicating a period of high volatility in operating expenses or revenue realization.
- Sustained Operational Losses (2018–2021)
- A severe downward trend began in 2018, characterized by a collapse in the operating profit margin to -59.27%. Although the margin showed a gradual narrowing of losses from -30.39% in 2019 to -20.00% by 2021, the company remained unable to return to operational profitability during this four-year window.
- Correlation Between Revenue and Profitability
- An inverse relationship is observed between sales growth and operating margins in the final years. While sales of natural gas, natural gas liquids, and oil increased significantly, reaching a peak of approximately $6.8 billion in 2021, the operating income remained deeply negative. This suggests that the increase in scale did not yield corresponding operational efficiencies or sufficient pricing power to cover operating costs.
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