Innovex International, Inc (INVX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 140,325 | 73,926 | 63,278 | 9,853 | -30,768 |
| Total assets | US$ in thousands | 1,197,480 | 1,028,180 | 436,286 | 284,895 | 1,151,170 |
| ROA | 11.72% | 7.19% | 14.50% | 3.46% | -2.67% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $140,325K ÷ $1,197,480K
= 11.72%
The analysis of Innovex International, Inc.'s Return on Assets (ROA) over the specified period reveals notable fluctuations that reflect changes in the company's profitability relative to its asset base. As of December 31, 2020, the company's ROA was at –2.67%, indicating a period of inefficiency, potentially due to losses or high operating expenses relative to its asset base. This negative ROA suggests that the firm was not generating sufficient income from its assets during that year.
By December 31, 2021, the ROA improved significantly to 3.46%, signaling a turnaround in operational performance and profitability. This positive shift suggests that the company might have experienced better earnings or optimized its assets more effectively, moving toward more sustainable profitability.
The most substantial increase occurred by December 31, 2022, when the ROA reached 14.50%. This substantial improvement indicates a particularly strong period of profitability, where the company generated a markedly higher return on its assets, possibly due to increased revenues, improved margins, or asset efficiency enhancements.
In subsequent years, the ROA saw a decline to 7.19% as of December 31, 2023, which, while lower than the peak in 2022, still reflects a solid level of asset utilization and profitability. The decrease could suggest some contraction in profitability or increased asset base without a proportional increase in earnings.
Finally, as of December 31, 2024, the ROA increased again to 11.72%. This rebound implies that the company managed to improve its profitability relative to its assets, possibly through operational efficiencies, revenue growth, or asset management optimization.
Overall, the trend in Innovex International, Inc.'s ROA demonstrates periods of significant improvement following initial losses, with notable peaks and troughs that reflect evolving operational and financial strategies. The positive and relatively high ROA in recent years indicates a generally healthy asset utilization and profitability trajectory, though fluctuations highlight potential areas for stability and consistent performance.
Peer comparison
Dec 31, 2024