APACAUTIOUS

Return on Equity (ROE)

23.5%

Higher than 84% of Energy sector peers

Updated 1928h ago

Sector Performance

84th percentile

APA

23.5%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from its shareholders’ equity.

APA’s current ROE of 23.5% means it earns $0.235 for every dollar of equity, far exceeding the Energy sector median of 13.2% and placing it in the 82nd percentile among peers. However, historical trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no values exist for the last eight quarters. With only a single data point, the high level alone suggests strong current profitability, but the lack of trend information makes it impossible to assess whether this performance is improving or deteriorating. This uncertainty reinforces the overall CAUTIOUS verdict, as the strong ROE does not contradict the caution but also does not provide enough forward-looking evidence to justify a more optimistic stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about APA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does APA's Return on Equity (ROE) compare to its sector?

APA's Return on Equity (ROE) of 23.5% compares to a Energy sector median of 11.8%, placing it in the 84th percentile.

Who are APA's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SHEL (10.7%), MTDR (10.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.