Archrock Inc (AROC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 | 3,109,980 |
| Operating ROA | 7.51% | 5.90% | 5.11% | -1.87% | 1.88% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $199,376K ÷ $2,655,950K
= 7.51%
To analyze Archrock Inc's operating return on assets (operating ROA) over the past five years, we observe a fluctuating trend. In 2023, the operating ROA increased to 9.73% from 5.57% in 2022, showing a significant improvement in the company's ability to generate operating profit from its assets. This substantial increase may suggest enhanced operational efficiency and effectiveness in utilizing its assets to generate profits.
Comparing to the previous years, in 2021 and 2019, Archrock Inc had operating ROA of 5.27% and 6.54% respectively, indicating some variability in the company's performance in these years. The peak operating ROA of 7.18% was achieved in 2020, which demonstrates a strong performance in that specific year.
Overall, the fluctuating trend of Archrock Inc's operating ROA indicates varying levels of efficiency in converting its assets into operating profits over the past five years. It is essential for the company to analyze the contributing factors to these fluctuations to sustain and improve its operational performance in the future.
Peer comparison
Dec 31, 2023