Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Pioneer Natural Resources Co., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
- Operating Profit Margin
- The operating profit margin exhibited significant fluctuations over the observed periods. Starting at 14.91% in the first quarter of 2020, there was a downward trend through the subsequent quarters of that year, reaching a low of 2.69% by the end of 2020. Entering 2021, the margin briefly turned negative at -0.36% in the first quarter but then recovered strongly, peaking at 18.56% by the year's end. In 2022, the margin showed a consistent upward trajectory, reaching a high of 42.04% in the fourth quarter. However, in 2023, the margin gradually declined each quarter, ending the year at 33.71% while still maintaining robust profitability compared to earlier periods.
- Net Profit Margin
- The net profit margin followed a pattern similar to the operating profit margin but with more pronounced negative values during periods of downturn. It started at 7.39% in early 2020 and decreased steadily to -2.85% by the end of that year. The first quarter of 2021 showed the most significant dip at -6.94%, reflecting challenging conditions. Subsequently, net margins improved markedly, reversing into positive territory and climbing steadily throughout 2021 and 2022, peaking at 32.17% in the last quarter of 2022. During 2023, there was a gradual decline in net profit margins but they remained strong, closing the year at 25.26%.
- Return on Equity (ROE)
- ROE demonstrated volatility driven largely by the broader profit margin trends. It began at 5.71% in early 2020 and declined sharply to negative territory by the end of 2020 (-1.73%). The lowest point during the period under review was in the first quarter of 2021 with -3.09%. Following this, ROE recovered substantially with an accelerating positive trend throughout 2021 and 2022, achieving a peak of 34.8% in the fourth quarter of 2022. In 2023, ROE decreased quarter over quarter, finishing at 21.12%, indicative of continued profitability albeit with reduced returns relative to peak performance.
- Return on Assets (ROA)
- The ROA trend mirrored the general trajectory observed in profitability measures. It started at a moderate 3.66% in the first quarter of 2020 and declined to negative values by the end of that year (-1.04%). The lowest point was in early 2021 (-1.85%), reflecting operational challenges. From mid-2021 onward, ROA rebounded steadily, reaching a maximum of 21.95% in the last quarter of 2022. Thereafter, the ratio saw a mild downward trend during 2023, ending the year at 13.37%, representing a solid but diminished efficiency in asset utilization compared to the prior peak.
Return on Sales
Return on Investment
Operating Profit Margin
Pioneer Natural Resources Co., operating profit margin calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income (loss) | 1,694) | 1,736) | 1,475) | 1,626) | 1,951) | 2,560) | 3,066) | 2,675) | 1,056) | 1,411) | 588) | 262) | 112) | 32) | (435) | 480) | |||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 33.71% | 34.86% | 37.33% | 40.30% | 42.04% | 37.75% | 34.65% | 27.35% | 18.56% | 16.58% | 8.87% | -0.36% | 2.69% | 8.05% | 11.56% | 14.91% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 15.37% | 18.06% | 19.98% | 21.92% | 21.42% | 21.03% | 19.86% | 16.73% | 14.81% | 11.53% | 6.49% | -7.90% | — | — | — | — | |||||
| ConocoPhillips | 30.57% | 30.06% | 31.80% | 33.89% | 36.80% | 37.27% | 37.07% | 36.63% | 29.84% | 22.86% | 14.26% | 4.66% | — | — | — | — | |||||
| Exxon Mobil Corp. | 16.24% | 17.15% | 19.54% | 21.37% | 19.07% | 18.60% | 15.93% | 12.25% | 11.91% | -2.07% | -6.88% | -12.46% | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q4 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023)
÷ (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
= 100 × (1,694 + 1,736 + 1,475 + 1,626)
÷ (5,076 + 5,141 + 4,560 + 4,597)
= 33.71%
2 Click competitor name to see calculations.
The financial data reveals a distinct positive trajectory in the company’s operating performance and revenue generation over the examined periods. Operating income demonstrates significant volatility initially, with a considerable loss recorded in Q2 2020, followed by a recovery trend leading to substantial increases, peaking in Q3 2022. Subsequent quarters show a moderate decline but maintain a relatively high level compared to the early periods. This indicates improved operational efficiency or market conditions contributing to profit stabilization at elevated levels.
Revenue from contracts with purchasers generally exhibits a steady upward trend throughout the timeline. Starting from a low base in early 2020, revenue increases markedly over the quarters, with the most notable growth occurring between early 2021 and mid-2022. Although revenue experiences some fluctuations in the last observed quarters, the values remain considerably higher than at the start of the period. This upward movement suggests successful sales expansion or pricing improvements during the timeframe.
The operating profit margin shows an initial dip, turning negative in Q1 2021, but thereafter demonstrates a robust and consistent improvement, reaching a peak in Q4 2022. Although there is a gradual reduction in margin percentages in the final quarters, they continue to reflect strong profitability relative to earlier periods. The margin trend underlines enhanced cost management or favorable product mix effects contributing to higher profitability ratios despite varying revenue levels.
- Operating Income
- Experienced high volatility in early 2020 with a large loss in Q2, followed by steady growth through 2021 and 2022, peaking mid-2022 and maintaining elevated levels thereafter.
- Revenue from Contracts
- Displayed a strong upward trajectory from early 2020 to mid-2022, with some minor fluctuations afterwards but remaining significantly above earlier levels, indicating robust revenue growth.
- Operating Profit Margin
- Initialized with a decline and negative value in early 2021, then steadily increased to a peak in late 2022, and showed a mild contraction in the final quarters, yet sustaining high profitability rates.
Overall, the data suggests enhanced operational performance and revenue growth, with profitability margins reflecting effective management strategies despite market challenges in earlier periods.
Net Profit Margin
Pioneer Natural Resources Co., net profit margin calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common stockholders | 1,269) | 1,301) | 1,102) | 1,222) | 1,481) | 1,984) | 2,371) | 2,009) | 763) | 1,045) | 380) | (70) | 43) | (85) | (449) | 291) | |||||
| Revenue from contracts with purchasers | 5,076) | 5,141) | 4,560) | 4,597) | 5,175) | 6,057) | 7,005) | 6,147) | 5,576) | 4,961) | 4,269) | 3,064) | 2,016) | 1,857) | 1,141) | 2,010) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 25.26% | 26.22% | 28.39% | 30.91% | 32.17% | 28.76% | 26.12% | 20.03% | 11.85% | 9.77% | 2.39% | -6.94% | -2.85% | 1.32% | 5.09% | 7.39% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 10.85% | 12.57% | 14.09% | 15.41% | 15.05% | 15.05% | 14.09% | 11.60% | 10.04% | 7.36% | 3.09% | -8.10% | — | — | — | — | |||||
| ConocoPhillips | 19.52% | 18.67% | 19.37% | 20.97% | 23.80% | 24.06% | 24.34% | 23.91% | 17.63% | 12.93% | 6.33% | 0.09% | — | — | — | — | |||||
| Exxon Mobil Corp. | 10.76% | 11.01% | 13.38% | 14.87% | 13.23% | 13.41% | 11.06% | 8.40% | 8.33% | -2.45% | -6.21% | -10.55% | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q4 2023 Calculation
Net profit margin = 100
× (Net income (loss) attributable to common stockholdersQ4 2023
+ Net income (loss) attributable to common stockholdersQ3 2023
+ Net income (loss) attributable to common stockholdersQ2 2023
+ Net income (loss) attributable to common stockholdersQ1 2023)
÷ (Revenue from contracts with purchasersQ4 2023
+ Revenue from contracts with purchasersQ3 2023
+ Revenue from contracts with purchasersQ2 2023
+ Revenue from contracts with purchasersQ1 2023)
= 100 × (1,269 + 1,301 + 1,102 + 1,222)
÷ (5,076 + 5,141 + 4,560 + 4,597)
= 25.26%
2 Click competitor name to see calculations.
The analyzed financial data reveals distinct trends in profitability and revenue generation over the observed periods.
- Net Income (Loss) Attributable to Common Stockholders
- The net income displayed notable volatility in 2020, with a loss in the second and third quarters, followed by a modest gain in the final quarter. In 2021, profitability improved significantly, peaking in the third quarter at 1,045 million US$. The subsequent quarters through 2022 showed elevated income levels, with the highest being over 2,300 million US$ in the second quarter of 2022. In 2023, net income moderated but remained strong relative to earlier years, fluctuating between approximately 1,100 and 1,300 million US$.
- Revenue from Contracts with Purchasers
- Revenue exhibited a strong upward trajectory beginning in 2020, rising sharply from just over 1,100 million US$ in mid-2020 to over 7,000 million US$ by the second quarter of 2022. Thereafter, revenue showed signs of contraction throughout the latter part of 2022 and into 2023, settling at values slightly above 4,500 million US$. This indicates a peak followed by a partial decline or stabilization at a lower level in recent periods.
- Net Profit Margin
- The net profit margin demonstrated significant improvement over the time span. Initially, margins were modest or negative in 2020, reflecting the losses and volatility observed in net income. From early 2021 onwards, margins improved markedly, reaching a peak exceeding 32% at the end of 2022. A gradual decline in margin percentages occurred through 2023, though profitability remained high, maintaining margins above 25%. This suggests enhanced operational efficiency or favorable market conditions sustained through the period.
Overall, the financial results indicate a recovery and growth phase commencing mid-2020, with peak performance approximately in 2021 and 2022. Revenue growth and increasing profit margins contributed to substantial net income gains. The subsequent periods show signs of revenue normalization and margin contraction, but results remain robust compared to the earlier years, suggesting a strong underlying financial position with some moderation in recent quarters.
Return on Equity (ROE)
Pioneer Natural Resources Co., ROE calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common stockholders | 1,269) | 1,301) | 1,102) | 1,222) | 1,481) | 1,984) | 2,371) | 2,009) | 763) | 1,045) | 380) | (70) | 43) | (85) | (449) | 291) | |||||
| Equity | 23,171) | 22,719) | 22,000) | 21,838) | 22,541) | 22,949) | 23,790) | 23,668) | 22,837) | 23,193) | 22,638) | 18,146) | 11,569) | 11,654) | 11,740) | 12,211) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 21.12% | 22.47% | 26.31% | 32.32% | 34.80% | 31.06% | 26.01% | 17.73% | 9.27% | 6.03% | 1.18% | -3.09% | -1.73% | 0.87% | 3.55% | 5.71% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 13.28% | 15.41% | 19.05% | 22.44% | 22.27% | 21.53% | 18.92% | 14.02% | 11.24% | 7.29% | 2.69% | -5.89% | — | — | — | — | |||||
| ConocoPhillips | 22.23% | 23.46% | 27.20% | 33.15% | 38.91% | 36.79% | 31.69% | 26.12% | 17.79% | 10.61% | 4.18% | 0.05% | — | — | — | — | |||||
| Exxon Mobil Corp. | 17.58% | 19.09% | 24.48% | 29.54% | 27.04% | 27.87% | 21.97% | 15.24% | 13.67% | -3.67% | -8.41% | -12.17% | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q4 2023 Calculation
ROE = 100
× (Net income (loss) attributable to common stockholdersQ4 2023
+ Net income (loss) attributable to common stockholdersQ3 2023
+ Net income (loss) attributable to common stockholdersQ2 2023
+ Net income (loss) attributable to common stockholdersQ1 2023)
÷ Equity
= 100 × (1,269 + 1,301 + 1,102 + 1,222)
÷ 23,171 = 21.12%
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in the company's profitability, equity base, and return on equity (ROE) over the observed periods.
- Net Income (Loss) Attributable to Common Stockholders
- Net income exhibited significant volatility in 2020, starting with a positive result followed by consecutive losses in the second and third quarters, and a modest recovery by year-end. From 2021 onwards, net income showed a strong upward trend, with some quarterly fluctuations but maintaining generally high profitability levels. The most substantial gains occurred in 2022, peaking early in the year, before showing a gradual decline during 2022 and 2023, although remaining in positive territory above 1 billion US dollars per quarter.
- Equity
- The equity base experienced a decline during 2020, reaching a low point in the fourth quarter. A sharp increase in equity was observed starting in the first quarter of 2021, nearly doubling compared to the end of 2020, and remained relatively stable with slight fluctuations through 2022 and 2023. This indicates a strengthening of the company's capital position during the recovery phase, followed by a period of consolidation.
- Return on Equity (ROE)
- ROE followed the pattern of net income but with more pronounced swings. It was positive at the start of 2020 but dipped into negative territory in the last quarter of the year. The metric recovered gradually in 2021, surpassing previous positive levels and reaching a strong upward momentum in 2022, peaking above 30%. ROE began to moderate in 2023, declining steadily but remaining well above early-year levels, indicating ongoing efficient use of equity despite lower net income growth.
Overall, the data suggests that after a challenging 2020 marked by losses and reduced shareholders’ equity, the company improved profitability and capital strength significantly throughout 2021 and 2022. Despite some decrease in net income and ROE in 2023, the company maintained solid profitability and high returns on equity compared to the early part of the data range. This reflects a successful recovery and effective capital management in the recent periods.
Return on Assets (ROA)
Pioneer Natural Resources Co., ROA calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common stockholders | 1,269) | 1,301) | 1,102) | 1,222) | 1,481) | 1,984) | 2,371) | 2,009) | 763) | 1,045) | 380) | (70) | 43) | (85) | (449) | 291) | |||||
| Total assets | 36,613) | 36,360) | 35,494) | 36,109) | 35,740) | 35,746) | 37,301) | 36,860) | 36,811) | 37,549) | 36,784) | 30,351) | 19,229) | 18,977) | 17,906) | 19,051) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 13.37% | 14.04% | 16.31% | 19.55% | 21.95% | 19.94% | 16.59% | 11.39% | 5.75% | 3.72% | 0.73% | -1.85% | -1.04% | 0.53% | 2.33% | 3.66% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 8.17% | 9.65% | 11.98% | 13.98% | 13.76% | 13.15% | 11.26% | 8.23% | 6.52% | 4.13% | 1.48% | -3.21% | — | — | — | — | |||||
| ConocoPhillips | 11.42% | 11.96% | 14.43% | 17.32% | 19.91% | 19.04% | 16.98% | 13.78% | 8.91% | 5.36% | 2.17% | 0.02% | — | — | — | — | |||||
| Exxon Mobil Corp. | 9.57% | 10.24% | 13.41% | 15.89% | 14.29% | 14.01% | 10.59% | 7.27% | 6.80% | -1.75% | -3.95% | -5.72% | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q4 2023 Calculation
ROA = 100
× (Net income (loss) attributable to common stockholdersQ4 2023
+ Net income (loss) attributable to common stockholdersQ3 2023
+ Net income (loss) attributable to common stockholdersQ2 2023
+ Net income (loss) attributable to common stockholdersQ1 2023)
÷ Total assets
= 100 × (1,269 + 1,301 + 1,102 + 1,222)
÷ 36,613 = 13.37%
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in profitability, asset size, and return on assets over the analyzed periods.
- Net Income (Loss) Attributable to Common Stockholders
-
The net income demonstrates significant volatility in the early periods, with losses recorded in the mid-2020 quarters followed by a recovery starting late 2020. From March 2021 onward, net income shows a pronounced upward trend, peaking in the first half of 2022, with values exceeding $2 billion. Following this peak, net income exhibits a gradual declining trend through 2023, though remains at a relatively high level above $1 billion.
- Total Assets
-
The total assets increased substantially from under $20 billion in early 2020 to approximately $37 billion by mid-2021, marking a notable expansion phase. It then stabilizes generally in the $35 billion to $37 billion range through the subsequent quarters up to the end of 2023, indicating consolidation after the growth phase.
- Return on Assets (ROA)
-
The ROA shows a marked improvement over time. Starting at positive but moderate levels in early 2020, it dips into negative territory towards the end of that year, reflecting reduced profitability relative to assets. From the first quarter of 2021 onward, ROA improves steadily, peaking in late 2022 near 22%, which corresponds with the period of peak net income. Subsequent quarters show a gradual decrease in ROA, though it remains strong relative to earlier periods, indicating efficient asset utilization despite recent profit moderation.
Overall, the data suggests the company experienced a recovery and growth phase beginning in 2021, reflected in increased net income and asset base expansion, as well as improving profitability ratios. The latter part of the period shows some signs of stabilization or softening in profitability metrics, while asset levels remain stable. These trends reflect a transition from recovery and expansion to consolidation and steady performance.