Archrock Inc (AROC)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	172,231	145,475	138,817	129,045	104,998	82,454	66,967	59,060	44,296	39,830	33,763	25,769	28,217	27,016	36,044	-3,089	-68,445	-27,192	-25,117	16,687
Total stockholders’ equity	US$ in thousands	1,323,530	1,290,740	894,496	882,080	871,021	861,093	855,533	853,050	860,693	869,816	873,918	872,323	891,438	904,047	913,821	923,124	935,557	949,685	950,873	999,472
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $172,231K ÷ $1,323,530K
= 13.01%

The return on equity (ROE) of Archrock Inc has shown fluctuations over the periods in question. From March 31, 2020, to December 31, 2020, the ROE remained negative, indicating that the company was not effectively utilizing shareholders' equity to generate profit.

However, from March 31, 2021, onward, the ROE started to show positive trends, indicating an improvement in the company's profitability relative to its shareholder's equity. This improvement continued through June 30, 2024, where the ROE peaked at 15.52%.

The increasing trend in ROE from 2021 to 2024 suggests that Archrock Inc has become more efficient in generating profits from the equity invested by shareholders. The substantial increase in ROE in the latter periods indicates that the company's profitability and efficiency have improved significantly.

Overall, the positive trend in ROE demonstrates that Archrock Inc has made strides in enhancing its financial performance and utilizing shareholder equity effectively to generate returns.