Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Pioneer Natural Resources Co., profitability ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Operating Profit Margin
- The operating profit margin experienced significant fluctuations over the analyzed period. Initially, it was relatively robust at 16.09% in 2019 but declined sharply to 2.69% in 2020. This was followed by a substantial recovery and growth, peaking at 42.04% in 2022 before declining moderately to 33.71% in 2023. The trend indicates a volatile but overall positive trajectory with peak operating profitability occurring in 2022.
- Net Profit Margin
- The net profit margin demonstrated a similar pattern of volatility. It started at 7.82% in 2019, dipped into negative territory at -2.85% in 2020, and then surged to 11.85% in 2021. This upward trend continued sharply to a high of 32.17% in 2022, followed by a decrease to 25.26% in 2023. The shift back to positive margins after 2020 indicates recovery and improved bottom-line profitability, though the drop in 2023 suggests some pressure on net earnings following the peak year.
- Return on Equity (ROE)
- Return on equity mirrored the profitability trends, starting at a modest 6.24% in 2019, turning negative at -1.73% in 2020, and then increasing significantly to 9.27% in 2021. The ROE saw a remarkable peak at 34.8% in 2022, denoting exceptionally high returns to shareholders for that year, before decreasing to 21.12% in 2023. While still strong, the decrease points to a less aggressive return compared to the previous year.
- Return on Assets (ROA)
- The return on assets followed a consistent pattern with other profitability measures. It started at 3.96% in 2019, dropped slightly below zero to -1.04% in 2020, then improved to 5.75% in 2021. ROA surged to 21.95% in 2022, reflecting more efficient asset utilization, before retreating to 13.37% in 2023. Despite the decline after 2022, the 2023 value remains notably higher than the earlier years, indicating continued effective asset management.
Return on Sales
Return on Investment
Operating Profit Margin
Pioneer Natural Resources Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Revenue from contracts with purchasers | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Operating Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue from contracts with purchasers
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibited significant fluctuations over the observed periods. There was a sharp decline from 1,556 million USD in 2019 to 189 million USD in 2020, indicating a substantial reduction in operating profitability during that year. A notable recovery followed in 2021, with operating income surging to 3,317 million USD. The upward trend continued in 2022, reaching a peak of 10,252 million USD. However, in 2023, operating income decreased to 6,531 million USD, suggesting a partial decline but remaining well above the levels recorded before 2021.
- Revenue from Contracts with Purchasers
- Revenue showed a downward shift in 2020, falling from 9,671 million USD in 2019 to 7,024 million USD in 2020. Subsequently, there was a strong growth phase in 2021 and 2022, with revenue rising to 17,870 million USD and 24,384 million USD respectively. In 2023, revenue declined to 19,374 million USD, indicating a reduction from the previous year but still maintaining a level significantly higher than pre-2021 figures.
- Operating Profit Margin
- The operating profit margin followed a trajectory consistent with the movements in operating income and revenue. It dropped drastically from 16.09% in 2019 to 2.69% in 2020, reflecting the sharp decrease in profitability. This metric rebounded strongly in 2021 to 18.56%, further increasing to a substantial 42.04% in 2022, demonstrating enhanced operational efficiency or favorable market conditions during that period. In 2023, the margin decreased to 33.71%, which, while lower than the peak, remained markedly higher than the earlier periods, underscoring sustained profitability improvements.
Net Profit Margin
Pioneer Natural Resources Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | ||||||
| Revenue from contracts with purchasers | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Revenue from contracts with purchasers
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income displayed considerable volatility over the analyzed period. In 2019, the company reported a positive net income of $756 million, which declined sharply in 2020 resulting in a net loss of $200 million. This was followed by a significant recovery and growth, with net income rising to $2,118 million in 2021, and reaching a peak of $7,845 million in 2022. The year 2023 saw a decline from the prior peak, with net income decreasing to $4,894 million, though it remained substantially higher than earlier years.
- Revenue from Contracts with Purchasers
- Revenue trends demonstrated an initial decrease from $9,671 million in 2019 to $7,024 million in 2020. Subsequently, revenue increased sharply to $17,870 million in 2021, continued to grow to $24,384 million in 2022, before retracting to $19,374 million in 2023. Despite the drop in the final year, revenue levels in 2023 were still considerably above those seen at the beginning of the period.
- Net Profit Margin
- The net profit margin followed a pattern largely consistent with net income trends, showing a decline into negative territory at -2.85% in 2020. The margin improved substantially to 11.85% in 2021 and surged further to a peak of 32.17% in 2022. In 2023, the margin decreased to 25.26% but remained robust, indicating a strong level of profitability relative to revenue despite the revenue reduction in that year.
Return on Equity (ROE)
Pioneer Natural Resources Co., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | ||||||
| Equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROE, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income (loss) attributable to common stockholders ÷ Equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income showed significant volatility over the five-year period. Starting at a positive value of $756 million in 2019, it declined sharply to a loss of $200 million in 2020. A strong recovery occurred in 2021, with net income rising to $2,118 million. This upward trend accelerated further in 2022, reaching a peak of $7,845 million, before decreasing to $4,894 million in 2023. Overall, the net income demonstrated a pattern of recovery and growth following the 2020 loss, though the value in 2023 decreased compared to the previous year.
- Equity
- Equity remained relatively stable from 2019 to 2020, with a minor decrease from $12,119 million to $11,569 million. However, it experienced a substantial increase in 2021, almost doubling to $22,837 million. In 2022 and 2023, equity values stabilized, showing slight fluctuations by decreasing marginally to $22,541 million and then increasing again to $23,171 million. This suggests a consolidation phase following the significant growth in 2021.
- Return on Equity (ROE)
- The ROE followed a trend similar to net income, reflecting the company's profitability relative to equity. Starting at 6.24% in 2019, it entered negative territory at -1.73% in 2020, indicating a loss relative to shareholders' equity. A positive turnaround occurred in 2021 with an ROE of 9.27%, followed by a substantial increase to 34.8% in 2022. However, in 2023, the ROE decreased to 21.12%, still signaling strong profitability but indicating a reduction from the previous year's peak.
- Overall Analysis
- The data reveals a company that experienced a significant downturn in 2020, as evidenced by negative net income and ROE. Subsequently, strong recovery and growth phases were observed in 2021 and 2022, highlighted by increasing net income, equity, and ROE. Although there was a decline in net income and ROE in 2023 compared to 2022, the values remained substantially higher than in the years before 2021. Equity levels more than doubled from 2020 to 2023, suggesting enhanced capital base and potential reinvestment to support growth. The fluctuations in profitability metrics imply periods of operational challenges followed by effective management responses leading to improved financial performance.
Return on Assets (ROA)
Pioneer Natural Resources Co., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROA, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income showed significant volatility over the five-year period. In 2019, net income was positive at 756 million USD. This was followed by a decline into negative territory in 2020, with a loss of 200 million USD. A marked recovery occurred in 2021, with net income rising sharply to 2,118 million USD. This upward trajectory continued into 2022, peaking at 7,845 million USD. However, in 2023, net income decreased to 4,894 million USD, although it remained substantially higher than the pre-2021 levels.
- Total Assets
- Total assets remained relatively stable in 2019 and 2020, with values of approximately 19,067 million USD and 19,229 million USD respectively. A substantial increase was observed in 2021, as total assets nearly doubled to 36,811 million USD. Afterwards, total assets slightly decreased in 2022 to 35,740 million USD, followed by a modest increase in 2023 to 36,613 million USD.
- Return on Assets (ROA)
- Return on assets fluctuated in alignment with net income trends. The ROA was positive at 3.96% in 2019, then declined to negative -1.04% in 2020, reflecting the net loss reported. A rebound was observed in 2021 with a ROA of 5.75%. The peak was reached in 2022 at 21.95%, indicating highly efficient use of assets in generating profit. In 2023, ROA declined to 13.37%, still reflecting strong asset profitability compared to earlier years.
- Overall Insights
- The data indicates a period of financial challenge in 2020, followed by substantial recovery and growth in profitability in subsequent years. The growth in total assets starting in 2021 suggests possible expansion or investment activities. Both net income and ROA peaked in 2022, illustrating a high level of operational efficiency and profitability. Despite a decline in 2023, profitability metrics remain above levels recorded prior to 2021, signaling sustained financial strength.