Archrock Inc (AROC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.40% | 30.48% | 31.74% | 21.88% | 34.37% |
| Operating profit margin | 22.43% | 19.55% | 18.80% | -6.72% | 6.71% |
| Pretax margin | 16.00% | 7.72% | 5.54% | -11.08% | 6.66% |
| Net profit margin | 11.81% | 5.64% | 4.01% | -8.82% | 11.15% |
Archrock Inc's profitability ratios have shown some fluctuations over the past five years.
The gross profit margin has been relatively stable, ranging from 50.39% to 56.89%, indicating the company's ability to efficiently manage production costs and generate profits from its core operations.
The operating profit margin has shown some variability, with a significant increase in 2023 to 26.10% from 17.11% in 2022. This suggests that the company has been able to improve its operational efficiency and control its operating expenses.
The pretax margin has also fluctuated, with a notable improvement in 2023 to 14.36% from 7.17% in 2022. This improvement indicates that the company has been able to better manage its non-operating expenses and generate higher profits before taxes.
The net profit margin has shown a mix of positive and negative values over the years, with a significant improvement in 2023 to 10.41% from 5.07% in 2022. This improvement reflects the company's ability to control its overall expenses and generate higher profits after accounting for taxes and other costs.
Overall, Archrock Inc's profitability ratios demonstrate improving profitability trends, particularly in 2023, which may indicate better financial health and performance for the company in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.51% | 5.90% | 5.11% | -1.87% | 1.88% |
| Return on assets (ROA) | 3.95% | 1.70% | 1.09% | -2.46% | 3.13% |
| Return on total capital | 10.33% | 6.72% | 6.07% | 0.75% | 15.00% |
| Return on equity (ROE) | 12.05% | 5.15% | 3.17% | -7.32% | 8.96% |
Archrock Inc's profitability ratios have shown mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has improved steadily from 5.27% in 2021 to 9.73% in 2023, indicating that the company is generating a higher operating profit from its assets.
2. Return on assets (ROA) has fluctuated over the years, with negative ROA in 2020 (-2.51%) but positive in the other years. The improvement from 1.04% in 2021 to 3.88% in 2023 suggests better asset utilization and profitability.
3. Return on total capital has also shown an upward trend, increasing from 5.63% in 2021 to 10.52% in 2023. This indicates that Archrock is generating a higher return on its invested capital.
4. Return on equity (ROE) has been volatile, with negative returns in 2020 (-7.46%) but positive in the other years. The significant improvement from 3.03% in 2021 to 11.84% in 2023 indicates better profitability for shareholders.
Overall, the increasing trends in operating return on assets, return on total capital, and return on equity show positive momentum in profitability for Archrock Inc. The company has been effectively utilizing its assets and capital to generate higher returns, reflecting improving financial performance over the years.