Archrock Inc (AROC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 199,376 | 153,439 | 132,275 | -52,109 | 58,572 |
| Revenue | US$ in thousands | 889,048 | 784,803 | 703,584 | 775,926 | 873,167 |
| Operating profit margin | 22.43% | 19.55% | 18.80% | -6.72% | 6.71% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $199,376K ÷ $889,048K
= 22.43%
Archrock Inc's operating profit margin has exhibited fluctuations over the past five years. In 2023, the operating profit margin increased significantly to 26.10%, up from 17.11% in 2022. This indicates a substantial improvement in the efficiency of the company's operations in generating profits from its core business activities.
However, compared to previous years, the operating profit margin in 2023 was lower than the levels seen in 2020 and 2019. In 2020, the margin stood at 22.81%, and in 2019, it was 21.07%. Despite the increase from 2022 to 2023, the company has not yet reached the peak levels of operating efficiency seen in these previous years.
Overall, the trend in Archrock Inc's operating profit margin shows variability, with fluctuations observed from year to year. It is essential for the company to analyze the factors contributing to these fluctuations and work towards improving operational efficiency consistently to sustain and enhance profitability in the long term.
Peer comparison
Dec 31, 2023