Archrock Inc (AROC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,323,530 | 871,021 | 860,693 | 891,438 | 935,557 |
| ROE | 13.01% | 12.05% | 5.15% | 3.17% | -7.32% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $172,231K ÷ $1,323,530K
= 13.01%
Archrock Inc's return on equity (ROE) has shown a mixed trend over the past five years based on the data provided.
In December 2020, the company's ROE was negative at -7.32%, indicating that its net income was not generating a positive return relative to shareholders' equity.
However, there has been a noticeable improvement in the company's ROE in the subsequent years. By the end of December 2021, the ROE improved to 3.17%, suggesting that the company's profitability relative to shareholders' equity started to recover.
The positive trend continued in the following years, with Archrock Inc's ROE increasing to 5.15% by December 2022, 12.05% by December 2023, and further to 13.01% by December 2024. These consecutive increases indicate that the company has been effectively utilizing its equity to generate higher returns for its shareholders.
Overall, the improving trend in Archrock Inc's ROE indicates that the company has been successfully increasing its profitability and generating higher returns on the shareholders' investments over the years. This positive trend may reflect well on the company's financial performance and its ability to effectively manage its assets and operations to enhance shareholder value.
Peer comparison
Dec 31, 2024