Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
EQT Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,348,798) | (908,089) | (1,339,125) | (2,332,609) | 408,113) | |
| Invested capital2 | 16,527,021) | 15,621,670) | 16,653,426) | 18,393,800) | 26,508,072) | |
| Performance Ratio | ||||||
| ROIC3 | -8.16% | -5.81% | -8.04% | -12.68% | 1.54% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Chevron Corp. | 10.04% | -5.22% | 0.44% | — | — | |
| ConocoPhillips | 13.45% | -5.92% | 12.76% | — | — | |
| Exxon Mobil Corp. | 12.01% | -12.45% | 5.40% | — | — | |
| Marathon Petroleum Corp. | 9.73% | -15.64% | 7.54% | — | — | |
| Occidental Petroleum Corp. | 7.26% | -23.53% | -0.80% | — | — | |
| Valero Energy Corp. | 12.49% | -4.03% | 10.87% | — | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -1,348,798 ÷ 16,527,021 = -8.16%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | EQT Corp. ROIC improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Decomposition of ROIC
EQT Corp., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
Operating Profit Margin (OPM)
EQT Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,348,798) | (908,089) | (1,339,125) | (2,332,609) | 408,113) | |
| Add: Cash operating taxes2 | 64,624) | (85,720) | (58,336) | (510,482) | (32,320) | |
| Net operating profit before taxes (NOPBT) | (1,284,174) | (993,809) | (1,397,460) | (2,843,091) | 375,793) | |
| Sales of natural gas, natural gas liquids and oil | 6,804,020) | 2,650,299) | 3,791,414) | 4,695,519) | 2,651,318) | |
| Profitability Ratio | ||||||
| OPM3 | -18.87% | -37.50% | -36.86% | -60.55% | 14.17% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Chevron Corp. | 15.98% | -8.90% | 4.08% | — | — | |
| ConocoPhillips | 29.99% | -13.37% | 31.34% | — | — | |
| Exxon Mobil Corp. | 14.69% | -17.59% | 8.83% | — | — | |
| Marathon Petroleum Corp. | 5.74% | -18.45% | 5.25% | — | — | |
| Occidental Petroleum Corp. | 20.91% | -79.93% | 6.27% | — | — | |
| Valero Energy Corp. | 5.33% | -3.98% | 4.62% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
OPM = 100 × NOPBT ÷ Sales of natural gas, natural gas liquids and oil
= 100 × -1,284,174 ÷ 6,804,020 = -18.87%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | EQT Corp. OPM deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Turnover of Capital (TO)
EQT Corp., TO calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Sales of natural gas, natural gas liquids and oil | 6,804,020) | 2,650,299) | 3,791,414) | 4,695,519) | 2,651,318) | |
| Invested capital1 | 16,527,021) | 15,621,670) | 16,653,426) | 18,393,800) | 26,508,072) | |
| Efficiency Ratio | ||||||
| TO2 | 0.41 | 0.17 | 0.23 | 0.26 | 0.10 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Chevron Corp. | 0.80 | 0.48 | 0.71 | — | — | |
| ConocoPhillips | 0.60 | 0.37 | 0.56 | — | — | |
| Exxon Mobil Corp. | 1.01 | 0.65 | 0.84 | — | — | |
| Marathon Petroleum Corp. | 1.89 | 0.99 | 1.51 | — | — | |
| Occidental Petroleum Corp. | 0.45 | 0.28 | 0.24 | — | — | |
| Valero Energy Corp. | 2.56 | 1.58 | 2.66 | — | — | |
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).
1 Invested capital. See details »
2 2021 Calculation
TO = Sales of natural gas, natural gas liquids and oil ÷ Invested capital
= 6,804,020 ÷ 16,527,021 = 0.41
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | EQT Corp. TO deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Effective Cash Tax Rate (CTR)
EQT Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,348,798) | (908,089) | (1,339,125) | (2,332,609) | 408,113) | |
| Add: Cash operating taxes2 | 64,624) | (85,720) | (58,336) | (510,482) | (32,320) | |
| Net operating profit before taxes (NOPBT) | (1,284,174) | (993,809) | (1,397,460) | (2,843,091) | 375,793) | |
| Tax Rate | ||||||
| CTR3 | — | — | — | — | -8.60% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Chevron Corp. | 21.79% | — | 85.07% | — | — | |
| ConocoPhillips | 25.25% | — | 27.88% | — | — | |
| Exxon Mobil Corp. | 19.45% | — | 27.33% | — | — | |
| Marathon Petroleum Corp. | 10.23% | — | 4.97% | — | — | |
| Occidental Petroleum Corp. | 22.36% | — | 152.57% | — | — | |
| Valero Energy Corp. | 8.53% | — | 11.52% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 64,624 ÷ -1,284,174 = —
4 Click competitor name to see calculations.