Liberty Oilfield Services Inc (LBRT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.60% | 24.39% | 19.63% | 3.72% | 1.61% |
| Operating profit margin | 9.03% | 16.02% | 11.95% | -7.33% | -18.33% |
| Pretax margin | 9.35% | 15.48% | 9.61% | -6.88% | -15.16% |
| Net profit margin | 7.32% | 11.72% | 9.63% | -7.25% | -11.97% |
Over the past five years, Liberty Oilfield Services Inc has shown a significant improvement in its profitability ratios. The gross profit margin has increased steadily from 1.61% in December 31, 2020, to 19.60% in December 31, 2024, indicating that the company has been able to improve its profitability on sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a positive trend, moving from negative percentages in 2020 and 2021 to 9.03% in December 31, 2024, signifying that the company has been able to better manage its operating expenses and generate operating profits.
The pretax margin and net profit margin have also displayed an upward trajectory, with the pretax margin increasing from -15.16% in December 31, 2020, to 9.35% in December 31, 2024, and the net profit margin rising from -11.97% in December 31, 2020, to 7.32% in December 31, 2024. These improvements suggest that Liberty Oilfield Services Inc has been able to enhance its overall profitability and efficiency in generating profits after accounting for all expenses and taxes.
In conclusion, the profitability ratios of Liberty Oilfield Services Inc have shown a positive trend over the five-year period, reflecting the company's efforts in improving operational efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.81% | 25.07% | 19.25% | -8.88% | -9.37% |
| Return on assets (ROA) | 9.59% | 18.34% | 15.51% | -8.78% | -6.12% |
| Return on total capital | 17.95% | 38.39% | 28.96% | -13.58% | -10.50% |
| Return on equity (ROE) | 15.97% | 30.21% | 26.73% | -14.77% | -10.05% |
Based on the provided data, Liberty Oilfield Services Inc's profitability ratios show a mixed performance over the years.
- Operating return on assets (Operating ROA): The company's operating ROA has improved significantly from negative figures in 2020 and 2021 to 25.07% in 2023, indicating that the company is generating operating income more efficiently relative to its asset base.
- Return on assets (ROA): The ROA also demonstrates an improvement trend, starting at negative levels in 2020 and 2021 and reaching 18.34% in 2023. This indicates that the company is becoming more effective at generating profits from its total assets.
- Return on total capital: The return on total capital shows a similar upward trend, increasing from negative values in 2020 and 2021 to 38.39% in 2023. This suggests that the company is utilizing its total capital more effectively to generate profits.
- Return on equity (ROE): The ROE has also shown positive growth, moving from negative figures in 2020 and 2021 to 30.21% in 2023. This implies that the company is providing higher returns to its shareholders relative to the equity invested.
Overall, the profitability ratios demonstrate an improving trend for Liberty Oilfield Services Inc, indicating better efficiency in generating profits and returns for both its assets and capital providers.