Archrock Inc (AROC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 871,021 | 860,693 | 891,438 | 935,557 | 1,085,960 |
| ROE | 12.05% | 5.15% | 3.17% | -7.32% | 8.96% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $104,998K ÷ $871,021K
= 12.05%
The return on equity (ROE) of Archrock Inc has shown variability over the past five years, ranging from -7.46% in 2020 to a peak of 11.84% in 2023. ROE indicates the company's efficiency in utilizing shareholders' equity to generate profits. The significant improvement in ROE from negative territory in 2020 to positive values in subsequent years suggests that the company has been able to enhance its profitability and efficiency in capital utilization.
The uptrend in ROE since 2020 reflects positively on Archrock Inc's financial performance and management effectiveness. The 11.84% ROE in 2023 indicates that the company generated a return of 11.84% on each dollar of equity invested by shareholders. This demonstrates improved profitability and enhances shareholder value.
Overall, the increasing trend in ROE for Archrock Inc reflects improved operational efficiency and effective utilization of shareholder funds to generate profits, suggesting a positive outlook for the company's financial performance. However, monitoring future trends in ROE will be essential to assess the company's ongoing performance and financial health.
Peer comparison
Dec 31, 2023