Archrock Inc (AROC)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	332,974	294,140	261,709	222,518	195,069	168,800	143,455	136,743	121,660	106,608	108,764	94,155	113,685	110,613	136,039	34,167	-172,181	-125,747	-165,062	-77,281
Revenue (ttm)	US$ in thousands	1,142,169	1,036,877	972,925	921,312	884,635	850,029	813,492	785,951	753,160	724,464	705,631	683,916	685,067	688,377	699,129	720,039	768,969	841,112	878,250	896,466
Operating profit margin		29.15%	28.37%	26.90%	24.15%	22.05%	19.86%	17.63%	17.40%	16.15%	14.72%	15.41%	13.77%	16.59%	16.07%	19.46%	4.75%	-22.39%	-14.95%	-18.79%	-8.62%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $332,974K ÷ $1,142,169K
= 29.15%

The operating profit margin of Archrock Inc has shown a significant improvement over the past few quarters. The margin was negative for most of 2020 and early 2021, indicating potential financial challenges. However, starting from March 2021, the company managed to achieve positive operating profit margins, which steadily increased through 2022 and 2023.

The trend continued into 2024, with operating profit margins seeing consistent growth. By the end of December 2024, the operating profit margin had increased to 29.15%, reflecting a strong performance in effectively managing operating expenses relative to revenue.

This positive trend in operating profit margin indicates that Archrock Inc has been successful in enhancing operational efficiency and profitability, which is generally viewed favorably by investors and stakeholders. It suggests that the company may be effectively controlling costs, improving pricing strategies, or increasing revenue streams to boost profitability.