Archrock Inc (AROC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.65% | 41.97% | 39.84% | 37.28% | 35.08% | 32.85% | 30.21% | 28.05% | 27.56% | 27.25% | 27.71% | 28.64% | 29.89% | 30.37% | 33.35% | 26.91% | 13.72% | 14.98% | 15.35% | 22.06% |
| 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% |
| Pretax margin | 20.35% | 18.97% | 19.13% | 18.80% | 16.08% | 13.15% | 10.95% | 10.25% | 8.04% | 7.30% | 6.59% | 4.45% | 5.69% | 5.80% | 7.27% | 0.33% | -11.18% | -10.08% | -9.92% | -4.02% |
| Net profit margin | 15.08% | 14.03% | 14.27% | 14.01% | 11.87% | 9.70% | 8.23% | 7.51% | 5.88% | 5.50% | 4.78% | 3.77% | 4.12% | 3.92% | 5.16% | -0.43% | -8.90% | -3.23% | -2.86% | 1.86% |
Archrock Inc's profitability ratios have shown a positive trend over the past few years.
- Gross profit margin has steadily increased from 22.06% in March 2020 to 41.65% in December 2024, indicating the company's ability to efficiently generate profit from its core operations.
- Operating profit margin has also shown improvement, with a rebound from negative margins in mid-2020 to 29.15% by December 2024. This demonstrates better control over operating expenses and a more stable operational performance.
- Pretax margin has exhibited consistent growth, starting from negative figures in 2020 and reaching 20.35% by December 2024. This suggests improved profitability before accounting for taxes, reflecting better business efficiency and financial management.
- Net profit margin has shown significant improvement, increasing from negative values in 2020 to 15.08% by December 2024. This indicates a positive bottom-line impact, highlighting the company's ability to turn revenue into net income.
Overall, the profitability ratios of Archrock Inc demonstrate a positive trajectory, indicating an improvement in its operational efficiency and financial performance over the evaluated period.
Return on investment
| 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 return on assets (Operating ROA) | 8.71% | 7.71% | 9.65% | 8.36% | 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% |
| Return on assets (ROA) | 4.50% | 3.81% | 5.12% | 4.85% | 3.95% | 3.09% | 2.50% | 2.25% | 1.70% | 1.53% | 1.30% | 0.99% | 1.09% | 1.03% | 1.34% | -0.11% | -2.46% | -0.95% | -0.86% | 0.55% |
| Return on total capital | 6.74% | 6.47% | 9.77% | 11.66% | 10.33% | 8.99% | 7.85% | 7.63% | 6.72% | 6.47% | 6.11% | 5.55% | 6.07% | 16.34% | 17.32% | 11.88% | 0.75% | 2.48% | 2.47% | 7.48% |
| Return on equity (ROE) | 13.01% | 11.27% | 15.52% | 14.63% | 12.05% | 9.58% | 7.83% | 6.92% | 5.15% | 4.58% | 3.86% | 2.95% | 3.17% | 2.99% | 3.94% | -0.33% | -7.32% | -2.86% | -2.64% | 1.67% |
To analyze Archrock Inc's profitability ratios based on the provided data:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows the company's ability to generate profit from its operating activities relative to its total assets.
- Archrock Inc's Operating ROA has improved steadily from negative values in early 2020 to reaching 8.36% by March 31, 2024. This indicates the company is becoming more efficient in generating operating profits from its assets.
2. Return on Assets (ROA):
- ROA measures the company's overall effectiveness in generating profits from its assets, including both operating and non-operating activities.
- Archrock Inc's ROA has shown a similar positive trend, increasing from negative values to 4.50% by December 31, 2024. This reflects the company's ability to use its assets more profitably over time.
3. Return on Total Capital:
- This ratio evaluates how well a company is able to generate returns from all sources of capital, including debt and equity.
- Archrock Inc's Return on Total Capital has also demonstrated improvement, reaching 11.66% by March 31, 2024. This suggests the company is effectively utilizing its total capital to generate returns for its stakeholders.
4. Return on Equity (ROE):
- ROE measures the return on shareholders' equity investment in the company.
- Archrock Inc's ROE has shown a consistent upward trend, increasing from negative values in 2020 to 13.01% by December 31, 2024. This indicates the company is becoming more profitable and efficient in generating returns for its equity investors.
Overall, the profitability ratios of Archrock Inc demonstrate a positive trajectory over the analyzed period, reflecting improving operational efficiency and profitability.