Archrock Inc (AROC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.15% | 42.19% | 30.48% | 31.74% | 21.88% |
| Operating profit margin | 30.96% | 22.43% | 19.55% | 18.80% | -6.72% |
| Pretax margin | 19.82% | 16.00% | 7.72% | 5.54% | -11.08% |
| Net profit margin | 14.69% | 11.81% | 5.64% | 4.01% | -8.82% |
Archrock Inc's profitability ratios have shown a positive trend over the years, indicating an improvement in the company's profitability. The Gross Profit Margin increased from 21.88% in 2020 to 43.15% in 2024, reflecting the company's ability to generate more profits on its sales after accounting for the cost of goods sold.
Similarly, the Operating Profit Margin showed significant growth, starting from -6.72% in 2020 and reaching 30.96% in 2024. This increase suggests that Archrock Inc has been able to control its operating expenses more efficiently and generate higher profits from its core operations.
The Pretax Margin also exhibited a strong upward trend, rising from -11.08% in 2020 to 19.82% in 2024. This indicates that the company has been able to improve its profitability before accounting for taxes over the years.
Lastly, the Net Profit Margin, which reflects the company's bottom line profitability, saw a substantial improvement from -8.82% in 2020 to 14.69% in 2024. This indicates that Archrock Inc has been able to increase its net income relative to its revenue, highlighting its ability to manage costs effectively and generate higher profits for its shareholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.49% | 7.51% | 5.90% | 5.11% | -1.87% |
| Return on assets (ROA) | 4.50% | 3.95% | 1.70% | 1.09% | -2.46% |
| Return on total capital | 6.74% | 10.33% | 6.72% | 6.07% | 0.75% |
| Return on equity (ROE) | 13.01% | 12.05% | 5.15% | 3.17% | -7.32% |
Based on the data provided, we can analyze the profitability ratios of Archrock Inc over the years from 2020 to 2024.
1. Operating return on assets (Operating ROA):
- The Operating ROA shows the operational profitability of the company. Archrock's Operating ROA has been improving steadily over the years, starting at -1.87% in 2020 and increasing to 9.49% in 2024. This indicates that the company's operational efficiency and asset utilization have been on an upward trend, resulting in higher profitability.
2. Return on assets (ROA):
- The ROA measures the overall profitability of the company in generating profits from its assets. Archrock's ROA has also shown improvement over the years, starting at -2.46% in 2020 and reaching 4.50% in 2024. This reflects that the company has been able to generate more profits relative to its total assets, indicating better financial performance.
3. Return on total capital:
- The Return on total capital reflects the efficiency of Archrock in generating returns for both debt and equity holders. The ratio fluctuates over the years, with a notable increase in 2023 to 10.33%. However, it slightly decreases to 6.74% in 2024. Overall, the company has been able to generate adequate returns on the total capital employed.
4. Return on equity (ROE):
- The ROE indicates the return generated for the equity shareholders of the company. Archrock's ROE has shown consistent improvement from -7.32% in 2020 to 13.01% in 2024. This suggests that the company has been effectively utilizing equity financing to generate higher returns for its shareholders.
In conclusion, the profitability ratios of Archrock Inc demonstrate a positive trend, with increasing returns on assets, total capital, and equity over the years. This indicates improving operational efficiency, asset utilization, and overall financial performance.