Dril-Quip Inc (DRQ)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,280 | 454 | -124,838 | -63,559 | 2,803 |
| Total assets | US$ in thousands | 1,028,180 | 969,951 | 1,009,930 | 1,151,170 | 1,206,560 |
| Operating ROA | 0.51% | 0.05% | -12.36% | -5.52% | 0.23% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,280K ÷ $1,028,180K
= 0.51%
Dril-Quip, Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. The operating ROA was 0.14% as of December 31, 2023, showing a slight improvement from the negative values reported in the previous years. In comparison, the operating ROA was -1.01% in 2022, -4.90% in 2021, -1.62% in 2020, and 0.47% in 2019.
The positive operating ROA in 2019 indicates that the company was efficiently utilizing its operating assets to generate profits. However, the negative operating ROA values in the subsequent years suggest that the company's operating performance deteriorated, resulting in lower profitability relative to its operating assets.
The recent improvement in the operating ROA in 2023 may indicate that Dril-Quip, Inc. has taken steps to enhance its operational efficiency and profitability. Further analysis of the company's operating expenses, revenue generation, asset utilization, and overall business strategy would provide a more comprehensive understanding of the factors influencing its operating ROA.
Peer comparison
Dec 31, 2023