Archrock Inc (AROC)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	172,231	104,998	44,296	28,217	-68,445
Total assets	US$ in thousands	3,824,200	2,655,950	2,598,750	2,589,970	2,779,720
ROA		4.50%	3.95%	1.70%	1.09%	-2.46%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $172,231K ÷ $3,824,200K
= 4.50%

Based on the provided data, Archrock Inc's return on assets (ROA) has shown an improving trend over the past five years. The company's ROA was negative at -2.46% on December 31, 2020, indicating that the company was not generating a significant return on its assets at that time.

However, there was a notable improvement in the company's ROA over the subsequent years. By December 31, 2021, the ROA had turned positive at 1.09%, indicating that the company was starting to generate a modest return on its assets. This positive momentum continued into the following years, with the ROA increasing to 1.70% by December 31, 2022, 3.95% by December 31, 2023, and reaching 4.50% by December 31, 2024.

The increasing trend in ROA suggests that Archrock Inc has been more efficient in generating profits relative to its assets over the years. A rising ROA generally indicates that the company is becoming more effective in utilizing its assets to generate earnings. This positive trend in ROA could be a reflection of improved operational efficiency, better management of assets, or increased profitability.

Overall, the improving ROA for Archrock Inc over the past five years suggests that the company has been successful in enhancing its profitability and efficiency in utilizing its assets to generate returns for its investors.