Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
EQT Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Operating Profit Margin
- The operating profit margin exhibited significant volatility across the analyzed periods. Initially, the margin was negative, with a marked deterioration starting in early 2020, reaching its lowest point of -93.36% in the third quarter of 2020. Following this trough, there was a gradual recovery observed through to the first quarter of 2022, where the margin turned positive, ending at 23.11%. This trend indicates improved operational efficiency or increased revenue relative to operating expenses in the most recent quarter.
- Net Profit Margin
- The net profit margin followed a pattern similar to that of the operating profit margin, maintaining negative values for most of the observed periods. It experienced a deep decline in 2020, with the lowest point of -82.92% in the third quarter. Since then, there has been a steady improvement, culminating in a positive margin of 15.05% in the first quarter of 2022. These fluctuations suggest substantial challenges in overall profitability during 2020, with recovery signs becoming apparent thereafter.
- Return on Equity (ROE)
- The return on equity showed a negative trend throughout the period until late 2021. Starting at -4.2% in the first quarter of 2019, it worsened significantly during 2020, reaching a nadir of -24.96% in the third quarter. A slight improvement occurred towards the end of 2021, but ROE remained negative until the last recorded quarter, where it turned positive at 19.34%. This indicates increasing efficiency in generating returns for shareholders in the recent period after a prolonged phase of underperformance.
- Return on Assets (ROA)
- Return on assets mirrored the trends observed in other profitability ratios, remaining negative for the majority of the timeline. There was a decline from -2.3% in early 2019 to -12.56% in late 2020. Starting in early 2021, a moderate yet consistent recovery was visible, culminating in a positive return on assets of 8.25% in the first quarter of 2022. This reflects an improved ability to utilize assets effectively to generate profit in the latest periods.
- Overall Analysis
- The company experienced a challenging financial environment between 2019 and 2020, as evidenced by deep negative profitability and return indicators across all metrics. The sharp declines particularly in 2020 suggest significant operational and financial headwinds during that period. However, from late 2021 onwards, there is a clear and sustained recovery trend across all key profitability measures, culminating in positive margins and returns by the first quarter of 2022. This turnaround implies either strengthening market conditions, improved cost management, or strategic initiatives that positively impacted financial performance.
Return on Sales
Return on Investment
Operating Profit Margin
EQT Corp., operating profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | ||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2022 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2022
+ Operating income (loss)Q2 2022
+ Operating income (loss)Q1 2022
+ Operating income (loss)Q4 2021)
÷ (Sales of natural gas, natural gas liquids and oilQ3 2022
+ Sales of natural gas, natural gas liquids and oilQ2 2022
+ Sales of natural gas, natural gas liquids and oilQ1 2022
+ Sales of natural gas, natural gas liquids and oilQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals significant volatility in the operating income and operating profit margin over the observed quarterly periods. Operating income exhibits sharp fluctuations, with notable losses during multiple quarters contrasted by periods of substantial income. Sales of natural gas, natural gas liquids, and oil generally trend upward, showing recovery and growth in recent quarters.
- Operating Income (US$ in thousands)
- Operating income initially shows a peak in the second quarter of 2019, followed by a steep decline into negative territory by the fourth quarter of 2019. A sporadic recovery is observed in the first quarter of 2020 but quickly reverses with recurring negative values throughout most of 2020 and the first half of 2021. The fourth quarter of 2021 marks a significant positive spike, reaching the highest value within the reported range. However, this is followed by another decline in the first quarter of 2022 before rising again in the subsequent quarters of 2022.
- Sales of Natural Gas, Natural Gas Liquids, and Oil (US$ in thousands)
- Sales show a general upward trend, despite some fluctuations early in the period. Initial quarters demonstrate relatively moderate sales values, with a dip in mid-2020 corresponding likely to external market pressures. From March 2021 onward, sales increase substantially, reaching their peak in the last observed quarter. This growth suggests an improving sales environment or increased production volumes.
- Operating Profit Margin (%)
- The operating profit margin consistently remains negative for most periods, indicating the company faced challenges in generating operating profits relative to sales. The margin hits its lowest points during late 2019 and mid-2020, aligning with the periods of most significant operating losses. Some improvement is evident from late 2021 onwards, culminating in a positive margin in the final quarter reported, reflecting the combined effect of higher operating income and increased sales.
In summary, the data signifies a company experiencing turbulent operating profitability, with recurring losses offset by occasional strong performances. The upward trend in sales in the latter periods may reflect recovery or expansion, contributing to improved operating margins. However, the variability in operating income underscores ongoing operational and market challenges during the timeframe analyzed.
Net Profit Margin
EQT Corp., net profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Net income (loss) attributable to EQT Corporation | ||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | ||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2022 Calculation
Net profit margin = 100
× (Net income (loss) attributable to EQT CorporationQ3 2022
+ Net income (loss) attributable to EQT CorporationQ2 2022
+ Net income (loss) attributable to EQT CorporationQ1 2022
+ Net income (loss) attributable to EQT CorporationQ4 2021)
÷ (Sales of natural gas, natural gas liquids and oilQ3 2022
+ Sales of natural gas, natural gas liquids and oilQ2 2022
+ Sales of natural gas, natural gas liquids and oilQ1 2022
+ Sales of natural gas, natural gas liquids and oilQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
Analysis of the quarterly financial performance reveals considerable volatility in the company's profitability and revenue generation over the observed periods. There are significant fluctuations in net income, sales figures, and profit margins that reflect varying operational and market conditions.
- Net Income (Loss) Trends (US$ in thousands)
- The company experienced positive net income during the early part of 2019, with figures of 190,691 and 125,566 in the first two quarters. However, this was followed by substantial losses in the latter half of 2019, with the third and fourth quarters registering losses of -361,028 and -1,176,924 respectively. This pattern of large net losses continued through most of 2020, with losses peaking at -600,640 in Q3 before a recovery to a small profit of 63,688 in Q4. The year 2021 saw renewed volatility with negative net income reaching nearly -2 billion in Q3, although this was accompanied by a strong rebound in Q4 with income of 1,801,333. The trend into 2022 shows mixed results, with significant positive income in the first and second quarters (891,361 and 683,670) but a return to negative in Q1 2022 (-1,516,048).
- Sales of Natural Gas, Natural Gas Liquids, and Oil (US$ in thousands)
- Sales figures demonstrate an overall increasing trend from 2019 through 2022. In 2019, sales ranged between approximately 769,627 and 1,271,613 thousand US dollars per quarter. Despite a drop during mid-2020, sales consistently rebounded, reaching a peak of roughly 3,694,194 thousand US dollars in Q3 2022. This steady growth in sales revenue suggests expansion or increased market demand over the observed period.
- Net Profit Margin (%)
- Profit margins depict a largely negative performance throughout most quarters, indicating that the company generally operated at a loss relative to sales revenue. The margin deteriorated sharply in late 2019 and through 2020, with several quarters showing margins worse than -80%. A notable recovery in margins occurred towards the end of 2021 and into 2022, culminating in a positive margin of 15.05% in Q3 2022. This improvement suggests enhanced operational efficiency or favorable market conditions contributing to profitability.
Overall, the company faced significant financial challenges during 2019 and 2020, marked by large net losses and negative profit margins despite fluctuating sales. However, from late 2021 into 2022, there is a clear indication of financial recovery, characterized by positive net income in several quarters and improved profit margins, supported by strong revenue growth. These trends may reflect successful strategic adjustments or shifts in external market factors positively impacting performance.
Return on Equity (ROE)
EQT Corp., ROE calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Net income (loss) attributable to EQT Corporation | ||||||||||||||||||||
| Common shareholders’ equity | ||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||
| ROE1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2022 Calculation
ROE = 100
× (Net income (loss) attributable to EQT CorporationQ3 2022
+ Net income (loss) attributable to EQT CorporationQ2 2022
+ Net income (loss) attributable to EQT CorporationQ1 2022
+ Net income (loss) attributable to EQT CorporationQ4 2021)
÷ Common shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in key performance indicators over the observed periods.
- Net Income (Loss) attributable to the company
- There is a marked volatility in net income, with periods of both significant losses and gains. The data shows initial positive net income values in early 2019, followed by a sharp decline resulting in large losses by the end of 2019 and mid-2020. Subsequently, results fluctuate, showing some recovery with intermittent losses, culminating in a substantial net income gain in late 2021 before declining again and then rebounding in 2022. This pattern suggests a highly variable operating environment or significant one-time events impacting profitability.
- Common Shareholders’ Equity
- Shareholders’ equity demonstrates a general downward trend from early 2019 through mid-2021, indicating possible accumulated losses or equity reductions. However, after reaching a low point around mid-2021, equity recovers noticeably through to late 2022. This recovery coincides with periods of positive net income, suggesting that profitable operations or capital injections may have contributed to equity rebuilding.
- Return on Equity (ROE)
- The ROE figures consistently show negative values for most periods, reflecting challenges in generating profits relative to shareholders' equity. The rate of return deteriorates severely between late 2019 and 2021, reaching a low of approximately -35%, indicating substantial losses relative to equity. There is a visible improvement towards the end of 2021 and into 2022, with ROE becoming positive by late 2022, indicating a turnaround in profitability relative to equity.
Overall, the patterns suggest a period of financial distress with significant losses and equity declines, followed by a phase of recovery marked by improved profitability and equity growth in the latter part of the presented timeline.
Return on Assets (ROA)
EQT Corp., ROA calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Net income (loss) attributable to EQT Corporation | ||||||||||||||||||||
| Total assets | ||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||
| ROA1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2022 Calculation
ROA = 100
× (Net income (loss) attributable to EQT CorporationQ3 2022
+ Net income (loss) attributable to EQT CorporationQ2 2022
+ Net income (loss) attributable to EQT CorporationQ1 2022
+ Net income (loss) attributable to EQT CorporationQ4 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- The net income attributable to the company demonstrates significant volatility across the observed quarters. Initial positive gains in early 2019 were followed by sharp declines into negative territory by the end of 2019 and throughout most of 2020, indicating periods of substantial losses. A notable recovery occurred in late 2020, with a positive net income recorded. However, fluctuations continued with a recurring pattern of losses and profits through 2021 and 2022, suggesting instability in profitability over the periods analyzed.
- Total Assets Evolution
- Total assets experienced a gradual decline from early 2019 through mid-2020, reflecting a contraction phase. Starting in the third quarter of 2020, asset levels began to stabilize and increase, showing a recovery trend. By the end of the period, total assets rose above prior lows, suggesting asset base expansion or improved asset valuations. This upward trend is indicative of renewed investment or asset accumulation post mid-2020.
- Return on Assets (ROA) Patterns
- The return on assets showed a persistent negative performance for most quarters, with the lowest points occurring in late 2019 and mid-2021, reaching close to or exceeding -12%. This sustained underperformance implies inefficiencies or challenges in effectively utilizing assets to generate profits during these periods. A gradual improvement is observed starting late 2021 into 2022, culminating in a positive ROA of 8.25% in the latest quarter, marking a significant turnaround in asset profitability.
- Overall Insights
- The financial data reflects a company experiencing considerable financial stress and operational challenges from late 2019 through 2021, characterized by large net losses and negative returns on assets. This period coincides with a contraction in total assets. A clear recovery phase appears beginning in late 2020, with improved earnings, asset growth, and a positive shift in profitability by mid-2022. The volatility and eventual positive turnaround suggest strategic adjustments or market improvements impacting the company’s financial performance.