Archrock Inc (AROC)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 229,465 | 240,534 | 362,146 | 470,902 |
| Total assets | US$ in thousands | 2,655,950 | 2,672,110 | 2,680,020 | 2,619,910 | 2,598,750 | 2,605,600 | 2,601,330 | 2,600,020 | 2,589,970 | 2,618,220 | 2,695,660 | 2,722,530 | 2,779,720 | 2,865,670 | 2,928,390 | 3,016,840 | 3,109,980 | 3,100,800 | 2,661,310 | 2,634,260 |
| Operating ROA | 7.34% | 6.32% | 5.35% | 5.22% | 4.68% | 4.09% | 4.18% | 3.62% | 4.39% | 4.22% | 5.05% | 1.25% | -6.19% | -4.39% | -5.64% | -2.56% | 7.38% | 7.76% | 13.61% | 17.88% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $195,069K ÷ $2,655,950K
= 7.34%
Operating Return on Assets (Operating ROA) is a key financial metric that evaluates a company's ability to generate operating profits relative to its total assets. In the case of Archrock Inc, the trend in Operating ROA shows a gradual improvement over the past eight quarters, indicating an enhancement in the company's operational efficiency and profitability.
The Operating ROA for Archrock Inc ranged from 5.08% to 9.73% during the periods Q1 2022 to Q4 2023. This increase demonstrates that the company has been able to effectively utilize its assets to generate operating income over time. The steady improvement in Operating ROA suggests that Archrock Inc has been able to enhance its operating performance and profitability, potentially through better cost management or revenue generation strategies.
The continuous growth in Operating ROA for Archrock Inc is a positive signal for investors and stakeholders, indicating the company's ability to generate higher returns from its operational activities. However, it is important to continue monitoring this metric in conjunction with other financial ratios and qualitative factors to gain a comprehensive understanding of the company's overall financial performance and sustainability.
Peer comparison
Dec 31, 2023