EQT Corp. (NYSE:EQT)

Asset Turnover

The reported and adjusted total asset turnover ratios show an overall positive trend over the five-year period. Starting at 0.09 in 2017, the turnover increased notably to 0.23 in 2018, dipped slightly in 2019 and 2020 to 0.20 and 0.15 respectively, then rose significantly to 0.31 in 2021. This indicates improving efficiency in asset utilization toward the end of the period, despite mid-term fluctuations.

Current Ratio

Both reported and adjusted current ratios exhibit considerable volatility. Beginning below 1 at 0.94 in 2017, the ratio decreased to 0.84 in 2018, peaked at 1.3 in 2019, then sharply declined to 0.69 in 2020 and further to 0.45 in 2021. The consistent drop after 2019 suggests increasing difficulty in covering short-term liabilities with current assets, reflecting potential liquidity concerns.

Debt to Equity Ratio

The reported debt to equity ratio rose gradually from 0.45 in 2017 to 0.55 in 2021, while the adjusted figures show a similar trend, increasing from 0.30 to 0.50 over the same period. This steady increase indicates a rising reliance on debt in the company’s capital structure, implying higher financial risk.

Debt to Capital Ratio

The reported debt to capital ratio remained relatively stable around 0.31 to 0.35 from 2017 through 2021. Adjusted values also show a moderate increase from 0.23 to 0.34 during this time. The slight upward movement signifies a modest increase in the proportion of debt within the overall capital base.

Financial Leverage

Reported financial leverage decreased from 2.22 in 2017 to a low of 1.89 in 2018, remained between 1.9 and 2.0 for the next two years, then increased to 2.15 in 2021. Adjusted leverage shows a steady rise from 1.46 to 1.97 over the five years. The general trend toward increased leverage suggests growing use of debt financing relative to equity.

Net Profit Margin

Reported net profit margins display significant volatility with a sharp decline from a positive 56.9% in 2017 to negative margins in the subsequent years, although the loss narrowed in 2021. Adjusted margins show a consistent pattern of losses beginning at 10.88% in 2017 and worsening substantially before an improvement yet remaining negative in 2021. This pattern indicates persistent profitability challenges, with some recovery evident in the latest year.

Return on Equity (ROE)

Reported ROE declined sharply from a positive 11.33% in 2017 to negative values throughout 2018 to 2021, fluctuating slightly but remaining weak. Adjusted ROE mirrors this trend with even lower values, indicating ongoing erosion of shareholder value and operational difficulties that have negatively affected equity returns over the period.

Return on Assets (ROA)

The reported ROA started at 5.11% in 2017 but fell into negative territory from 2018 onwards, showing minor fluctuations but no substantial recovery. The adjusted ROA follows a similar trajectory, starting below 1% and declining steadily to -7.37% in 2021. This signals consistent inefficiency in asset utilization to generate profits.

Sales of natural gas, natural gas liquids and oil

The sales figures exhibited considerable fluctuations over the five-year period. Starting at approximately 2.65 billion US dollars in 2017, sales almost doubled in 2018 to around 4.70 billion. Thereafter, sales decreased notably to about 3.79 billion in 2019 and further dropped to roughly 2.65 billion in 2020. A significant rebound occurred in 2021, with sales peaking at approximately 6.80 billion US dollars, the highest figure in the examined period.

Total assets

Total assets demonstrated a declining trend from 2017 through 2020, falling from nearly 29.5 billion US dollars to about 18.1 billion. However, in 2021, total assets increased moderately to around 21.6 billion US dollars. This indicates a notable contraction in asset base prior to 2021, followed by some recovery in the final year.

Reported total asset turnover

This efficiency ratio showed corresponding variability with sales and asset levels. The turnover improved markedly from a low 0.09 in 2017 to 0.23 in 2018, indicating better utilization of assets to generate sales. It dipped slightly to 0.20 in 2019 and declined further to 0.15 in 2020, consistent with reductions in sales efficiency. A strong recovery to 0.31 was observed in 2021, reflecting improved asset use to drive higher sales.

Adjusted total assets

Adjusted total assets mirrored the pattern of total assets, declining consistently from approximately 29.7 billion in 2017 to 18.1 billion in 2020, then increasing modestly to about 21.6 billion in 2021. The similarity between total and adjusted assets indicates minimal adjustments impacting overall asset valuation in this timeframe.

Adjusted total asset turnover

The adjusted total asset turnover ratio closely followed the trend of the reported total asset turnover ratio, beginning at 0.09 in 2017, peaking at 0.23 in 2018, then slipping to 0.20 and 0.15 in 2019 and 2020 respectively, before rising to 0.31 in 2021. This alignment further confirms consistent performance in asset utilization metrics regardless of the adjustments made to asset figures.

Current Assets

Current assets exhibited an initial growth from approximately 1,163 million US dollars at the end of 2017 to about 1,970 million in 2018. However, a decline followed in 2019 and 2020, dropping to nearly 1,215 million in 2020. This trend reversed significantly in 2021 with current assets reaching their highest level over the period at around 2,287 million US dollars.

Current Liabilities

Current liabilities showed a fluctuation across the time frame, starting at about 1,232 million US dollars at the end of 2017 and sharply increasing to 2,355 million in 2018. Following that, the liabilities decreased to 1,346 million in 2019 but then rose again to 1,762 million in 2020. In 2021, there was a marked surge in current liabilities, which more than doubled from the previous year to approximately 5,080 million US dollars.

Reported Current Ratio

The reported current ratio, a key liquidity indicator, declined progressively from 0.94 in 2017 to a low of 0.45 in 2021. This downward trend indicates a diminishing ability to meet short-term obligations with current assets over the period. The ratio peaked above 1.3 in 2019, suggesting temporary improved liquidity before the sharp decline in subsequent years.

Adjusted Current Assets

Adjusted current assets closely followed the pattern of reported current assets, registering an increase from 1,171 million in 2017 to nearly 1,978 million in 2018. After a dip to around 1,222 million in 2020, adjusted current assets rose significantly by the end of 2021, aligning with the reported figures at approximately 2,287 million US dollars.

Adjusted Current Ratio

The adjusted current ratio mirrored the trends seen in the reported current ratio, starting at 0.95 in 2017, briefly improving to 1.31 in 2019, and then declining sharply to 0.45 in 2021. This indicates that even when adjusted for any specific considerations or reclassifications, the company's short-term liquidity position weakened significantly over the five-year span.

Summary of Trends and Insights

Overall, the data indicate volatility in both current assets and liabilities, with liabilities experiencing a more pronounced increase, especially in 2021. The substantial rise in current liabilities in 2021 is not matched by a proportional increase in current assets, resulting in a pronounced deterioration of liquidity ratios. The current ratios falling well below 1.0 in the latter years suggest increasing challenges in covering short-term liabilities with short-term assets. This trend could imply a higher liquidity risk, potentially signaling pressure on working capital management or changes in operational financing. The near-identical trends between reported and adjusted figures suggest consistency in the underlying financial data without significant adjustments affecting liquidity assessment.

Total Debt

The total debt has shown a fluctuating but generally decreasing trend from 2017 to 2020, declining from approximately $6.0 billion to about $4.9 billion. However, there was an increase in 2021, with total debt rising again to approximately $5.5 billion. This indicates efforts to reduce debt for several years, followed by a recent increase.

Common Shareholders’ Equity

Common shareholders’ equity has demonstrated a consistent downward trend from 2017 through 2020, falling from about $13.3 billion to $9.3 billion. In 2021, equity showed a slight recovery, increasing to over $10.0 billion, suggesting some stabilization or growth after several years of decline.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased steadily from 0.45 in 2017 to 0.55 in 2021. This implies that debt levels have been growing relative to equity, signaling a slightly increased leverage position over the period.

Adjusted Total Debt

The adjusted total debt followed a similar pattern to total debt, decreasing from about $6.2 billion in 2017 to approximately $5.0 billion in 2020, with a subsequent increase to $5.5 billion in 2021. This parallel movement confirms that adjustments did not significantly alter the overall debt trend.

Adjusted Total Equity

Adjusted total equity saw a sharp decline from 2017 to 2018, dropping from over $20.3 billion to around $12.8 billion. Afterward, it continued to decline to about $10.6 billion in 2020, with a slight uptick to nearly $11.0 billion in 2021. This marks a substantial reduction in adjusted equity primarily in the early years, followed by relative stabilization.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio increased consistently from 0.3 in 2017 to 0.5 in 2021. This growth in leverage is more pronounced than the reported ratio due to the equity adjustments, highlighting increased financial risk or reliance on debt financing over the period.

Total Debt

Total debt decreased from approximately $6.0 billion in 2017 to about $4.9 billion in 2020, indicating a reduction in debt levels over this period. However, in 2021, total debt increased again to roughly $5.5 billion, suggesting a partial reversal of the prior downward trend.

Total Capital

Total capital showed a consistent downward trend from around $19.3 billion in 2017 to about $14.2 billion in 2020. In 2021, total capital increased to approximately $15.5 billion, indicating some recovery after years of decline.

Reported Debt to Capital Ratio

The reported debt to capital ratio rose from 0.31 in 2017 to 0.35 by 2019 and then remained stable through 2021. This suggests a gradual increase in leverage initially, stabilizing at a higher level from 2019 onward.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to total debt, declining from about $6.2 billion in 2017 to around $5.0 billion in 2020, before increasing to approximately $5.5 billion in 2021. This adjustment confirms the general trend observed in the unadjusted debt figures.

Adjusted Total Capital

Adjusted total capital decreased sharply from approximately $26.5 billion in 2017 to $15.6 billion in 2020, before seeing a modest increase to about $16.5 billion in 2021. The sharper decline in adjusted capital compared to reported capital points to more significant reductions when incorporating adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased notably from 0.23 in 2017 to 0.30 in 2018, continuing to rise gradually to 0.34 by 2021. This upward trend indicates a steady increase in financial leverage when considering adjusted measures.

Total Assets

Total assets demonstrated a declining trend from 2017 through 2020, decreasing from approximately $29.5 billion to $18.1 billion. However, there was a noticeable rebound in 2021, with total assets increasing to around $21.6 billion.

Common Shareholders’ Equity

Common shareholders’ equity experienced a continuous decline over the five-year period. Starting at approximately $13.3 billion in 2017, it decreased consistently each year, reaching around $9.3 billion by the end of 2020. A moderate recovery occurred in 2021, with equity rising to just above $10 billion.

Reported Financial Leverage

The reported financial leverage ratio trended downward from 2.22 in 2017 to 1.89 in 2018, remaining relatively stable in 2019 and 2020 at around 1.9 to 2.0. In 2021, the ratio increased again to 2.15, indicating a higher level of leverage returned to the company.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, with a decline from approximately $29.7 billion in 2017 to $18.1 billion in 2020, followed by a recovery to around $21.6 billion in 2021.

Adjusted Total Equity

Adjusted total equity showed a sharper decline in comparison to common shareholders’ equity, dropping significantly from about $20.3 billion in 2017 to just over $10.6 billion in 2020. The equity level stabilized somewhat in 2021, showing minor growth to nearly $11 billion.

Adjusted Financial Leverage

Adjusted financial leverage exhibited an increasing trend overall, rising from 1.46 in 2017 steadily each year to 1.97 in 2021. This trend suggests increasing utilization of debt or liabilities relative to equity when adjusted values are considered, indicating a rise in the company's financial risk profile over the period.

Net Income (Loss) Attributable to EQT Corporation

The net income showed a significant positive figure in 2017, amounting to approximately 1.51 billion US dollars. However, it turned negative in 2018 and remained negative throughout the following years with losses deepening to over 2.24 billion US dollars in 2018, then slightly improving but still negative in subsequent years: about -1.22 billion in 2019, -967 million in 2020, and -1.16 billion in 2021.

Sales of Natural Gas, Natural Gas Liquids, and Oil

Sales figures increased substantially from 2017 to 2018, rising from approximately 2.65 billion to 4.70 billion US dollars. There was a decline in 2019 and 2020, with sales dropping to about 3.79 billion and 2.65 billion respectively. However, sales surged again in 2021, reaching the highest level in the period at approximately 6.80 billion US dollars.

Reported Net Profit Margin

The reported net profit margin followed a steeply declining trend from 2017 onwards. The margin started positively at 56.9% in 2017 but turned negative in 2018 at -47.8%. It remained negative with margins of -32.22% in 2019, -36.49% in 2020, and improved slightly in 2021 to -16.99%, indicating persistent challenges in profitability.

Adjusted Net Income (Loss)

The adjusted net income mirrored the net income trend, switching from a positive 288 million US dollars in 2017 to negative values in subsequent years. Losses deepened particularly in 2018 to approximately -2.52 billion US dollars and remained negative through 2021, ranging roughly between -1.12 billion and -1.59 billion US dollars. This suggests ongoing operational difficulties even after adjustments.

Adjusted Net Profit Margin

The adjusted net profit margin also demonstrated a negative trajectory similar to the reported margin. Starting at a positive 10.88% in 2017, it dropped sharply to -53.69% in 2018 and stayed in negative territory thereafter: -39.52% in 2019, -42.4% in 2020, and -23.42% in 2021. This reflects persistent profitability pressures impacting core operations adjusted for one-time items.

The financial data presents a clear downturn in profitability and equity performance over the analyzed period.

Net Income (Loss)

The net income attributable to the company shows a significant decline from a positive value of approximately $1.51 billion in 2017 to consecutive losses in the following years, with the largest loss recorded in 2018 at around $2.24 billion. The losses, although slightly lesser, persist through 2019 to 2021, indicating ongoing challenges to profitability.

Common Shareholders’ Equity

Common shareholders’ equity displays a downward trend from 2017 to 2020, decreasing from about $13.32 billion to approximately $9.26 billion. There is a slight recovery in 2021 to roughly $10.03 billion; however, the equity remains notably lower than the 2017 level, reflecting a reduction in net assets available to shareholders over the period.

Reported Return on Equity (ROE)

The reported ROE mirrors the net income trend, showing a positive return of 11.33% in 2017 followed by negative returns in all subsequent years, reaching a low of -20.48% in 2018 before stabilizing near -11% to -12% range in 2020 and 2021. This negative ROE indicates that the company did not generate profit relative to equity and experienced value erosion for shareholders.

Adjusted Net Income (Loss)

The adjusted net income, which likely accounts for specific one-time or non-recurring items, also confirms the unprofitable trend with losses starting from 2018. The initial positive adjusted income in 2017 is much lower than the reported net income, at about $288 million, indicating possible adjustments reducing earnings that year. Losses deepen in 2018 through 2021, with 2021 showing the largest adjusted loss of approximately $1.59 billion, suggesting persistent operational or structural issues.

Adjusted Total Equity

Adjusted total equity follows a downward trajectory from 2017 to 2020, declining from about $20.31 billion to roughly $10.64 billion, with a modest increase to $10.98 billion in 2021. Despite this slight recovery, the value remains nearly half of the 2017 level, underscoring significant depletion of adjusted equity over time.

Adjusted ROE

The adjusted return on equity remains low throughout the period, with a minimal positive return of 1.42% in 2017 and negative rates thereafter. The lowest adjusted ROE is noted at -19.71% in 2018, similar to the reported figure, followed by negative values improving ever so slightly but still indicating consistent losses relative to adjusted equity. The adjusted ROE decreases further to -14.5% in 2021, indicating worsening returns after adjustment considerations.

Overall, the data suggests a period characterized by significant financial challenges, with losses sustained annually post-2017, substantial shrinkage of equity bases both reported and adjusted, and consistently negative return metrics. These patterns highlight issues in profitability, asset valuation, and shareholder value creation over the five-year horizon.

Net Income (Loss) Attributable to EQT Corporation

The company experienced a significant decline in net income over the five-year period. Starting from a positive figure of approximately 1.51 billion USD in 2017, net income turned negative in 2018 and remained negative through 2021. The losses deepened to over 2.24 billion USD in 2018 and stabilized in a range between approximately 967 million USD and 1.16 billion USD in losses from 2019 to 2021, indicating persistent profitability challenges.

Total Assets

Total assets exhibited a downward trend from the end of 2017 through 2020, decreasing from about 29.5 billion USD to 18.1 billion USD. However, an increase occurred in 2021, with assets rising to approximately 21.6 billion USD. This suggests a period of asset reduction followed by a partial recovery or investment.

Reported Return on Assets (ROA)

The reported ROA mirrored the net income trend, starting at a positive 5.11% in 2017 and declining sharply to -10.83% in 2018. From 2019 to 2021, ROA remained negative but showed slight improvement from -6.5% to around -5.35%. This reflects ongoing challenges in generating returns from the asset base, though with some stabilization in recent years.

Adjusted Net Income (Loss)

Adjusted net income figures, which likely exclude certain one-time or non-recurring items, also show a substantial decline from a positive 288 million USD in 2017 to consistent losses thereafter. Similar to reported net income, adjusted losses deepened significantly in 2018 to about -2.52 billion USD and remained large but somewhat variable losses through 2021, reaching almost -1.6 billion USD in 2021.

Adjusted Total Assets

Adjusted total assets broadly track the trend of total assets, decreasing sharply from 29.7 billion USD in 2017 down to roughly 18.1 billion USD in 2020, before rising to approximately 21.6 billion USD in 2021. The similarity to total assets indicates consistent asset valuation methods in adjusted terms.

Adjusted Return on Assets (ROA)

The adjusted ROA follows the same negative trend as the reported ROA, starting near 0.97% in 2017 and declining sharply to -12.1% in 2018. It improved marginally in subsequent years but stayed negative, ranging between -7.96% and -6.2% through 2020, and slightly worsening to -7.37% in 2021. This pattern highlights persistent negative profitability pressures even when adjustments are made.

Overall, the data reveals a company facing significant profitability challenges starting from 2018, with net income and adjusted net income losses persisting through 2021. Asset values decreased markedly until 2020, then partially recovered in 2021. Both reported and adjusted returns on assets turned strongly negative post-2017, indicating difficulties in generating returns on the asset base, although with some signs of stabilization in recent years.