Archrock Inc (AROC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,824,200 | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 |
| Operating ROA | 9.49% | 7.51% | 5.90% | 5.11% | -1.87% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $362,932K ÷ $3,824,200K
= 9.49%
The operating return on assets (operating ROA) of Archrock Inc has shown a positive trend over the past five years. Starting at a negative level of -1.87% on December 31, 2020, the company improved its operating ROA to 5.11% by December 31, 2021. This positive momentum continued as the operating ROA further increased to 5.90% by December 31, 2022, and then to 7.51% by December 31, 2023. The most recent data point as of December 31, 2024, indicates a notable improvement to 9.49%.
This steady increase in operating ROA reflects Archrock Inc's ability to generate operating profits relative to its total assets. It suggests that the company is becoming more efficient in utilizing its assets to generate operating income over time, which is a positive indicator of operational performance and potentially sustainable growth. It's important to continue monitoring this metric to ensure the company's profitability and efficiency remain on track in the future.
Peer comparison
Dec 31, 2024