Innovex International, Inc (INVX)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Mar 31, 2025	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
Operating income (ttm)	US$ in thousands	63,454	39,298	15,597	-9,470	5,335	-973	257	-917	-5,149	-3,498	-9,804	-28,214	-34,181	-47,335	-49,551	-38,987	-31,117	-22,246	-15,460	-1,816
Total assets	US$ in thousands	1,227,080	1,196,000	1,197,480	1,132,780	1,008,160	1,021,030	1,028,180	486,980	979,666	975,396	972,515	970,524	973,566	978,110	1,010,430	1,093,740	1,124,710	1,126,830	1,151,170	1,159,540
Operating ROA		5.17%	3.29%	1.30%	-0.84%	0.53%	-0.10%	0.02%	-0.19%	-0.53%	-0.36%	-1.01%	-2.91%	-3.51%	-4.84%	-4.90%	-3.56%	-2.77%	-1.97%	-1.34%	-0.16%

June 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $63,454K ÷ $1,227,080K
= 5.17%

Innovex International, Inc. has experienced notable fluctuations in its operating return on assets (ROA) over the analyzed period from September 30, 2020, through June 30, 2025. Initially, the company demonstrated negative operating ROA values, beginning at -0.16% in September 2020 and deepening to -4.90% by December 2021, reflecting significant challenges in generating operating income relative to its assets during this period.

Between early 2022 and late 2024, there has been a trend towards gradual improvement, with the negative operating ROA decreasing from -4.84% in March 2022 to a near-break-even point of 0.02% in December 2023. This indicates that the company’s operating efficiency was steadily recovering, approaching the point where operating income roughly equated to its asset base.

In the subsequent period, from the end of 2023 through June 2025, the ROA transitioned into positive territory, reaching a high of 5.17% in June 2025. This substantial positive shift suggests a significant enhancement in operational performance, possibly attributable to improved revenue generation, cost management, or both. The movement from negative to sustained positive operating ROA marks a notable turnaround in the company's operational profitability relative to its assets, indicating a period of operational recovery and potential value creation.

Overall, the trend reflects a trajectory from initial operational difficulties to a period of recovery and growth, culminating in a positive operating ROA by mid-2025. This progression demonstrates the company’s increasing efficiency in utilizing its assets to generate operating income over the analyzed timeframe.