Liberty Oilfield Services Inc (LBRT)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	556,317	399,602	-179,244	-115,583	39,003
Revenue	US$ in thousands	4,747,930	4,149,230	2,470,780	965,787	1,990,350
Net profit margin		11.72%	9.63%	-7.25%	-11.97%	1.96%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $556,317K ÷ $4,747,930K
= 11.72%

The net profit margin of Liberty Energy Inc has shown variability over the past five years. In 2023, the net profit margin improved significantly to 11.72%, indicating that the company generated a higher percentage of profit relative to its total revenue compared to the previous years. This improvement suggests effective cost management or increased revenue generation.

In 2022, the net profit margin was 9.63%, showing a slight decrease from the previous year but still maintaining a positive margin. The company managed to remain profitable despite the slight decline in profitability.

The significant negative net profit margins in 2021 (-7.25%) and 2020 (-11.97%) are concerning, indicating that the company experienced losses during those years. These negative margins could be attributed to various factors such as high expenses, declining sales, or one-time charges.

In 2019, the net profit margin was positive but relatively low at 1.96%, indicating that the company's profitability was modest in that year.

Overall, the trend in net profit margin for Liberty Energy Inc shows fluctuations, with recent improvements suggesting better financial performance and management compared to previous years. However, further analysis is needed to understand the underlying reasons for the fluctuations and to assess the company's overall financial health.