Archrock Inc (AROC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 104,998 | 44,296 | 28,217 | -68,445 | 97,330 |
| Total assets | US$ in thousands | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 | 3,109,980 |
| ROA | 3.95% | 1.70% | 1.09% | -2.46% | 3.13% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $104,998K ÷ $2,655,950K
= 3.95%
Looking at the return on assets (ROA) of Archrock Inc over the five-year period, we can observe fluctuations in the company's efficiency in generating profits from its assets.
In 2019, Archrock Inc had an ROA of 3.09%, indicating that for every dollar of assets the company owned, it generated a profit of 3.09 cents. This was a relatively good performance in terms of asset utilization.
In 2020, however, the ROA turned negative at -2.51%, implying that the company experienced a loss on its assets rather than a profit. This could have been due to various factors such as a decrease in revenue or an increase in expenses.
The following years saw an improvement in Archrock Inc's ROA. In 2021, the ROA increased to 1.04%, showing a recovery from the previous year's loss. Subsequently, in 2022, the ROA further improved to 1.65%, indicating better asset efficiency.
The most recent year, 2023, demonstrated a significant increase in ROA to 3.88%, reaching a level similar to that of 2019. This suggests that Archrock Inc was able to enhance its profitability in relation to its assets, potentially through improved operational efficiency or increased revenue.
Overall, the trend in Archrock Inc's ROA shows fluctuations over the five-year period, with significant improvements in recent years. It is essential for investors and stakeholders to monitor this metric to assess the company's ability to generate profits from its asset base effectively.
Peer comparison
Dec 31, 2023