Archrock Inc (AROC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 237,452 | 228,239 | 244,685 | 285,430 | 253,735 | 221,693 | 195,856 | 183,162 | 161,848 | 153,194 | 147,117 | 132,568 | 147,096 | 147,688 | 158,312 | 109,647 | 19,734 | 23,568 | 23,463 | 74,725 |
| Long-term debt | US$ in thousands | 2,198,380 | 2,236,130 | 1,608,960 | 1,566,570 | 1,584,870 | 1,604,550 | 1,639,240 | 1,547,270 | 1,548,330 | 1,498,900 | 1,532,440 | 1,517,020 | 1,530,820 | — | — | — | 1,688,870 | — | — | — |
| 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 |
| Return on total capital | 6.74% | 6.47% | 9.77% | 11.66% | 10.33% | 8.99% | 7.85% | 7.63% | 6.72% | 6.47% | 6.11% | 5.55% | 6.07% | 16.34% | 17.32% | 11.88% | 0.75% | 2.48% | 2.47% | 7.48% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $237,452K ÷ ($2,198,380K + $1,323,530K)
= 6.74%
The return on total capital of Archrock Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
- The ratio declined from 7.48% in March 2020 to a low of 0.75% by December 2020.
- However, there was a notable improvement in the return on total capital in the subsequent quarters, with percentages rising to 17.32% by June 2021 and 16.34% by September 2021.
- The ratio then experienced a decline, reaching 6.07% by December 2021 before recovering slightly to 6.74% by December 2024.
- The return on total capital peaked at 11.66% in March 2024 but saw a decrease in subsequent periods.
Overall, the return on total capital for Archrock Inc has displayed significant variability, indicating changes in the company's efficiency in generating returns on its capital investments over the analyzed period. Analyses of the factors contributing to these fluctuations would provide deeper insights into the company's financial performance and strategic decisions.
Peer comparison
Dec 31, 2024