Return on Assets (ROA)
since 2010
Calculation
Kinder Morgan Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Kinder Morgan, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 2.95% | = | 100 | × | 2,190) | ÷ | 74,157) |
| Dec 31, 2018 | 2.04% | = | 100 | × | 1,609) | ÷ | 78,866) |
| Dec 31, 2017 | 0.23% | = | 100 | × | 183) | ÷ | 79,055) |
| Dec 31, 2016 | 0.88% | = | 100 | × | 708) | ÷ | 80,305) |
| Dec 31, 2015 | 0.30% | = | 100 | × | 253) | ÷ | 84,104) |
| Dec 31, 2014 | 1.23% | = | 100 | × | 1,026) | ÷ | 83,198) |
| Dec 31, 2013 | 1.59% | = | 100 | × | 1,193) | ÷ | 75,185) |
| Dec 31, 2012 | 0.46% | = | 100 | × | 315) | ÷ | 68,185) |
| Dec 31, 2011 | 1.94% | = | 100 | × | 594) | ÷ | 30,717) |
| Dec 31, 2010 | -0.14% | = | 100 | × | (41) | ÷ | 28,908) |
Based on: 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).
1 US$ in millions
The analysis of Return on Assets (ROA) from 2010 to 2019 reveals a period of significant asset expansion followed by a phase of increasing operational efficiency and profitability.
- Asset Base Dynamics
- A substantial increase in total assets occurred between 2011 and 2012, where assets more than doubled from US$ 30,717 million to US$ 68,185 million. This growth trend continued through 2015, peaking at US$ 84,104 million. Subsequently, a gradual contraction in the asset base is observed, with total assets declining to US$ 74,157 million by December 31, 2019.
- Net Income Volatility
- Net income attributable to the company exhibited significant fluctuations over the decade. Following a loss of US$ 41 million in 2010, income experienced several peaks and troughs, including a notable decline in 2015 (US$ 253 million) and 2017 (US$ 183 million). A strong upward trajectory emerged toward the end of the period, culminating in a peak of US$ 2,190 million in 2019.
- ROA Performance and Trends
- The ROA demonstrated high variability, closely mirroring the volatility of net income and the expansion of the asset base. After recovering from -0.14% in 2010 to 1.94% in 2011, the ratio dropped to 0.46% in 2012, a decline attributable to the rapid increase in total assets which diluted the return. Between 2013 and 2017, the ROA remained relatively low, fluctuating between 0.23% and 1.59%. A significant recovery is observed in 2018 and 2019, where the ROA climbed to 2.04% and 2.95%, respectively.
The convergence of increasing net income and a reducing asset base in the final two years of the analyzed period indicates a marked improvement in asset utilization and overall financial efficiency.
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Comparison to Competitors
Kinder Morgan Inc., ROA, long-term trends, comparison to competitors
| Kinder Morgan Inc. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 2.95% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | 2.04% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | 0.23% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | 0.88% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | 0.30% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 1.23% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 1.59% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | 0.46% | 11.24% | 7.19% | 13.45% |
| Dec 31, 2011 | 1.94% | 12.84% | 8.12% | 12.40% |
| Dec 31, 2010 | -0.14% | 10.30% | 7.27% | 10.07% |
Based on: 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).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Kinder Morgan Inc., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Kinder Morgan Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 2.95% | 3.65% |
| Dec 31, 2018 | 2.04% | 6.26% |
| Dec 31, 2017 | 0.23% | 4.15% |
| Dec 31, 2016 | 0.88% | 0.55% |
| Dec 31, 2015 | 0.30% | 2.33% |
| Dec 31, 2014 | 1.23% | 8.01% |
| Dec 31, 2013 | 1.59% | 8.79% |
| Dec 31, 2012 | 0.46% | 11.62% |
| Dec 31, 2011 | 1.94% | 11.59% |
| Dec 31, 2010 | -0.14% | 9.45% |
Based on: 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).
Comparison to Industry (Energy)
Kinder Morgan Inc., ROA, long-term trends, comparison to industry (energy)
| Kinder Morgan Inc. | Energy | |
|---|---|---|
| Dec 31, 2019 | 2.95% | 1.97% |
| Dec 31, 2018 | 2.04% | 5.95% |
| Dec 31, 2017 | 0.23% | 3.55% |
| Dec 31, 2016 | 0.88% | 0.27% |
| Dec 31, 2015 | 0.30% | 2.39% |
| Dec 31, 2014 | 1.23% | 8.02% |
| Dec 31, 2013 | 1.59% | 8.90% |
| Dec 31, 2012 | 0.46% | 11.40% |
| Dec 31, 2011 | 1.94% | 11.40% |
| Dec 31, 2010 | -0.14% | 9.36% |
Based on: 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).