Liberty Oilfield Services Inc (LBRT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.39% | 19.63% | 3.72% | 1.61% | 13.13% |
| Operating profit margin | 16.02% | 11.95% | -7.33% | -18.33% | 5.20% |
| Pretax margin | 15.48% | 9.61% | -6.88% | -15.16% | 2.67% |
| Net profit margin | 11.72% | 9.63% | -7.25% | -11.97% | 1.96% |
Liberty Energy Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has generally trended upwards, indicating improvements in managing production costs and generating profits from sales. The operating profit margin has also shown a positive trend, indicating the company's ability to control operating expenses and generate profits from its core business activities.
However, the company faced challenges in profitability in 2021 and 2020, as evidenced by negative operating profit margins and pretax margins. This suggests that during those years, the company's operating expenses and overall performance were not efficiently managed. The significant improvement in these margins in 2022 and 2023 indicates that management efforts have been successful in enhancing operational efficiency and profitability.
The pretax and net profit margins have also shown fluctuations, with the company experiencing losses in 2021 and 2020. The positive trend in both margins in the following years indicates that Liberty Energy Inc has been able to turn its financial performance around and generate profits.
Overall, the improving trend in profitability ratios demonstrates that Liberty Energy Inc has made significant strides in enhancing its operational efficiency and financial performance over the past few years. Continued efforts to manage costs effectively and drive revenue growth will be essential for sustaining and building upon this positive momentum.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.07% | 19.25% | -8.88% | -9.37% | 8.07% |
| Return on assets (ROA) | 18.34% | 15.51% | -8.78% | -6.12% | 3.04% |
| Return on total capital | 38.39% | 28.96% | -13.58% | -10.50% | 10.25% |
| Return on equity (ROE) | 30.21% | 26.73% | -14.77% | -10.05% | 7.03% |
The profitability ratios of Liberty Energy Inc have shown a mixed performance over the past five years.
Starting with the Operating return on assets (Operating ROA), the ratio has generally improved from 2019 to 2023, indicating that the company has been able to generate more operating income relative to its total assets in recent years. This is a positive trend that suggests improved operational efficiency.
The Return on assets (ROA) has also shown a similar improvement trend, with the ratio increasing steadily from 2019 to 2023. This indicates that Liberty Energy has been able to generate higher profits from its assets over the years, which is a positive sign of asset utilization and overall profitability.
The Return on total capital has exhibited a more volatile pattern, fluctuating between positive and negative values. However, the ratio has generally trended upwards from 2019 to 2023, indicating that the company has been able to generate higher returns relative to its total invested capital. This is a positive signal for the company's ability to generate profits from its capital investments.
Lastly, the Return on equity (ROE) has also shown an improvement trend over the years, with the ratio increasing from 2019 to 2023. This indicates that Liberty Energy has been able to generate higher returns for its shareholders from the equity invested in the company.
Overall, the profitability ratios of Liberty Energy Inc demonstrate a positive trend of improving profitability and efficiency, as indicated by the increasing values of the profitability metrics over the past five years.