Archrock Inc (AROC)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 362,932 199,376 153,439 132,275 -52,109
Revenue US$ in thousands 1,172,300 889,048 784,803 703,584 775,926
Operating profit margin 30.96% 22.43% 19.55% 18.80% -6.72%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $362,932K ÷ $1,172,300K
= 30.96%

The operating profit margin of Archrock Inc has shown a notable improvement over the years. Starting at a negative margin of -6.72% as of December 31, 2020, the company managed to turn the situation around, achieving positive margins in the subsequent years. By December 31, 2021, the margin reached 18.80%, signaling a substantial recovery. The positive trend continued with further improvements to 19.55% by December 31, 2022, 22.43% by December 31, 2023, and eventually reaching 30.96% by December 31, 2024. This steady increase in operating profit margin reflects the company's ability to control costs and enhance operational efficiency, ultimately leading to a more profitable business performance.