Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
EQT Corp., profitability ratios
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).
- Operating Profit Margin
- The operating profit margin exhibited a sharp decline from a positive 14.42% in 2017 to negative values in subsequent years. It dropped drastically to -59.27% in 2018 and remained deeply negative through 2019 (-30.39%), 2020 (-33.12%), and 2021 (-20%), suggesting persistent operating challenges and reduced profitability at the core business level.
- Net Profit Margin
- Net profit margin followed a similar negative trend, peaking at a favorable 56.9% in 2017 but plunging to -47.8% the following year. The margin remained negative over the period, with values of -32.22% in 2019, -36.49% in 2020, and a relatively smaller loss of -16.99% in 2021. This pattern indicates ongoing net losses, albeit with some improvement toward the end of the timeframe.
- Return on Equity (ROE)
- Return on equity decreased significantly after 2017, falling from 11.33% to negative territory (-20.48%) in 2018. Although it slightly recovered in later years, it remained negative across 2019 (-12.46%), 2020 (-10.45%), and 2021 (-11.52%), reflecting sustained unprofitability for equity holders and challenges in generating positive returns on shareholders' investments.
- Return on Assets (ROA)
- Return on assets demonstrated a decline analogous to ROE, dropping from 5.11% in 2017 to -10.83% in 2018. It showed slight improvement but stayed negative in the following years: -6.5% in 2019, -5.34% in 2020, and essentially flat at -5.35% in 2021. This trend points to operational inefficiencies and an inability to generate adequate returns from the company's asset base.
Return on Sales
Return on Investment
Operating Profit Margin
EQT Corp., operating profit margin 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) | ||||||
| Operating income (loss) | (1,360,975) | (877,666) | (1,152,110) | (2,783,124) | 382,212) | |
| 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 | ||||||
| Operating profit margin1 | -20.00% | -33.12% | -30.39% | -59.27% | 14.42% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 14.81% | -6.22% | — | — | — | |
| ConocoPhillips | 29.84% | -12.74% | — | — | — | |
| Exxon Mobil Corp. | 11.91% | -14.85% | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 14.57% | -11.92% | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Energy | 14.46% | -14.52% | — | — | — | |
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 2021 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Sales of natural gas, natural gas liquids and oil
= 100 × -1,360,975 ÷ 6,804,020 = -20.00%
2 Click competitor name to see calculations.
- Operating income (loss)
- The operating income demonstrated a significant decline over the analyzed period, starting from a positive figure of approximately 382 million US dollars in 2017 and shifting to a substantial loss in subsequent years. In 2018, the operating loss deepened drastically to around -2.78 billion US dollars, followed by continued losses in 2019 and 2020, though somewhat less severe, amounting to approximately -1.15 billion and -878 million US dollars respectively. The year 2021 saw a worsening in operating losses again, reaching approximately -1.36 billion US dollars. This pattern indicates persistent operational challenges over the five-year span.
- Sales of natural gas, natural gas liquids and oil
- Sales revenue from natural gas, natural gas liquids, and oil exhibited a fluctuating but overall upward trend. Starting at about 2.65 billion US dollars in 2017, sales almost doubled to approximately 4.70 billion US dollars in 2018. A noticeable decline occurred in 2019 and 2020, with sales dropping to roughly 3.79 billion and 2.65 billion US dollars, respectively. However, 2021 marked a substantial recovery or growth, with sales exceeding 6.8 billion US dollars, the highest figure within the examined timeframe.
- Operating profit margin
- The operating profit margin moved from a healthy positive margin of around 14.42% in 2017 to significantly negative margins in all subsequent years. In 2018, the margin plummeted to -59.27%, reflecting severe profitability issues. Although slight improvements were seen in 2019 and 2020, with margins of approximately -30.39% and -33.12% respectively, the profitability remained deeply negative. By 2021, the margin improved somewhat to -20%, yet it continued to indicate losses on operations. This persistent negative margin corresponds with the sustained operating losses recorded.
Net Profit Margin
EQT Corp., net profit margin 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 income (loss) attributable to EQT Corporation | (1,155,759) | (967,166) | (1,221,695) | (2,244,568) | 1,508,529) | |
| 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 | ||||||
| Net profit margin1 | -16.99% | -36.49% | -32.22% | -47.80% | 56.90% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 10.04% | -5.87% | — | — | — | |
| ConocoPhillips | 17.63% | -14.38% | — | — | — | |
| Exxon Mobil Corp. | 8.33% | -12.57% | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.78% | -10.51% | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Energy | 9.70% | -13.06% | — | — | — | |
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 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to EQT Corporation ÷ Sales of natural gas, natural gas liquids and oil
= 100 × -1,155,759 ÷ 6,804,020 = -16.99%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to EQT Corporation
- The net income showed a positive figure of approximately 1.51 billion USD in 2017, followed by a significant decline into negative territory in subsequent years. From 2018 through 2021, the company experienced consistent net losses, with the magnitude of loss showing some fluctuation but remaining substantial each year. The losses decreased slightly in 2020 but increased again in 2021, reflecting ongoing profitability challenges.
- Sales of Natural Gas, Natural Gas Liquids, and Oil
- Sales revenue exhibited marked variability over the period. There was a significant increase from about 2.65 billion USD in 2017 to approximately 4.70 billion USD in 2018. Subsequently, sales decreased considerably in 2019 and 2020 before rebounding sharply in 2021 to the highest recorded figure of roughly 6.80 billion USD. This recovery in 2021 sales suggests either increased volume, higher prices, or a combination of both factors.
- Net Profit Margin
- The net profit margin mirrored the net income trend, starting with a strong positive margin of 56.9% in 2017. However, the margin turned negative in 2018 and remained so throughout the following years. Although the negative margin improved somewhat in 2021 compared to prior years, it remained substantially below zero, indicating ongoing operational and/or market challenges affecting profitability despite increased sales.
- Overall Insights
- The company faced a pronounced decline in profitability after 2017, entering a phase of sustained financial losses despite fluctuating sales figures. The sharp sales increase in 2021 did not translate into a return to net profitability, though it partially mitigated losses. This combination of volatile sales and consistent negative margins points to significant cost pressures, pricing challenges, or other operational issues impacting overall financial health during the period analyzed.
Return on Equity (ROE)
EQT Corp., ROE 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 income (loss) attributable to EQT Corporation | (1,155,759) | (967,166) | (1,221,695) | (2,244,568) | 1,508,529) | |
| Common shareholders’ equity | 10,029,527) | 9,255,240) | 9,803,588) | 10,958,229) | 13,319,618) | |
| Profitability Ratio | ||||||
| ROE1 | -11.52% | -10.45% | -12.46% | -20.48% | 11.33% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | 11.24% | -4.21% | — | — | — | |
| ConocoPhillips | 17.79% | -9.05% | — | — | — | |
| Exxon Mobil Corp. | 13.67% | -14.28% | — | — | — | |
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.24% | -9.63% | — | — | — | |
| ROE, Industry | ||||||
| Energy | 13.21% | -12.46% | — | — | — | |
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 2021 Calculation
ROE = 100 × Net income (loss) attributable to EQT Corporation ÷ Common shareholders’ equity
= 100 × -1,155,759 ÷ 10,029,527 = -11.52%
2 Click competitor name to see calculations.
- Net income (loss) attributable to EQT Corporation
- The net income showed a significant decline over the analyzed period. In 2017, the company reported a positive net income of approximately $1.51 billion. However, from 2018 onwards, the company experienced consecutive net losses, with values worsening in 2018 to around -$2.24 billion. Although the losses slightly reduced in subsequent years, the company remained unprofitable through 2021, with net losses fluctuating between approximately -$967 million and -$1.16 billion.
- Common shareholders’ equity
- The common shareholders’ equity exhibited a downward trend from 2017 to 2020, decreasing from about $13.32 billion in 2017 to approximately $9.26 billion in 2020. This reduction indicates a decline in the equity base over these years. In 2021, there was a modest recovery in equity to around $10.03 billion, suggesting some stabilization or capital inflows during that year.
- Return on Equity (ROE)
- The return on equity closely mirrored the company's profitability trends. In 2017, the ROE was positive at 11.33%, reflecting a profitable year. Starting from 2018, the ROE turned negative and remained so throughout the period, indicating continued unprofitability relative to shareholder equity. The negative ROE values ranged from approximately -10.45% to -20.48%, with the most severe decline occurring in 2018. Although the negative ROE slightly improved after 2018, it did not return to positive territory.
- Overall Analysis
- The financial data reflects a challenging period characterized by sustained losses and declining shareholder equity. The significant loss experienced in 2018 appears to have had a lasting impact, as the company was unable to restore profitability in the subsequent years. The decline in equity over the first four years followed by a slight increase in 2021 may suggest efforts to stabilize the financial position. The persistent negative ROE highlights ongoing difficulties in generating returns for shareholders during the period analyzed.
Return on Assets (ROA)
EQT Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to EQT Corporation | (1,155,759) | (967,166) | (1,221,695) | (2,244,568) | 1,508,529) | |
| Total assets | 21,607,388) | 18,113,469) | 18,809,227) | 20,721,344) | 29,522,604) | |
| Profitability Ratio | ||||||
| ROA1 | -5.35% | -5.34% | -6.50% | -10.83% | 5.11% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | 6.52% | -2.31% | — | — | — | |
| ConocoPhillips | 8.91% | -4.31% | — | — | — | |
| Exxon Mobil Corp. | 6.80% | -6.74% | — | — | — | |
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.99% | -4.83% | — | — | — | |
| ROA, Industry | ||||||
| Energy | 6.84% | -6.08% | — | — | — | |
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 2021 Calculation
ROA = 100 × Net income (loss) attributable to EQT Corporation ÷ Total assets
= 100 × -1,155,759 ÷ 21,607,388 = -5.35%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to EQT Corporation
- The net income figures demonstrate a significant downward trend over the analyzed period. Starting from a positive value of approximately 1.51 billion USD in 2017, the company experienced a substantial loss in 2018 amounting to over 2.2 billion USD. Subsequent years saw continued negative results, with losses reducing slightly but remaining materially negative through 2019 to 2021.
- Total Assets
- Total assets showed a marked decline from 2017 to 2020, dropping from nearly 29.5 billion USD to approximately 18.1 billion USD. However, in 2021, total assets increased to about 21.6 billion USD, indicating some recovery or asset acquisition after several years of contraction.
- Return on Assets (ROA)
- ROA trends correspond closely with net income developments. Starting at a positive return of 5.11% in 2017, ROA fell dramatically to -10.83% in 2018. It remained negative in following years, although with smaller magnitude losses of around -6.5% in 2019 and stabilizing near -5.3% in 2020 and 2021. This pattern reflects the continuing operational challenges and losses despite an asset base that contracted initially and then partially recovered.
- Overall Observations
- The data indicates that the company experienced major financial difficulties starting in 2018, resulting in consistent net losses and negative profitability metrics through 2021. The decline in total assets suggests asset sales or write-downs during the period of losses, with some replenishment or revaluation evident in the most recent year. The negative ROA across the last four years highlights ongoing inefficiency in generating profit from the asset base, signaling the need for strategic or operational adjustments to return to profitability.