Liberty Oilfield Services Inc (LBRT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 389,468 | 760,579 | 495,890 | -181,224 | -177,026 |
| Total assets | US$ in thousands | 3,296,390 | 3,033,560 | 2,575,930 | 2,040,660 | 1,889,940 |
| Operating ROA | 11.81% | 25.07% | 19.25% | -8.88% | -9.37% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $389,468K ÷ $3,296,390K
= 11.81%
Liberty Oilfield Services Inc's operating Return on Assets (ROA) has shown mixed trends over the past five years. The company experienced negative operating ROA in both 2020 and 2021, with percentages of -9.37% and -8.88% respectively, indicating inefficiency in generating profits from its assets during those years.
However, there was a significant turnaround in 2022, with the operating ROA rising sharply to 19.25%, indicating an improvement in the company's operational efficiency and profitability. This positive trend continued in 2023, where the operating ROA further increased to 25.07%, reflecting even stronger performance in utilizing its assets to generate profits.
In 2024, although there was a slight decrease in the operating ROA to 11.81%, the company still managed to maintain a double-digit percentage, showing continued effectiveness in generating profits relative to its asset base.
Overall, the company's operating ROA has shown improvement in recent years after initially experiencing negative returns, indicating enhanced operational efficiency and profitability in utilizing its assets to generate profits. However, it is important for Liberty Oilfield Services Inc to sustain this positive trend and strive for consistent growth in its operating ROA to ensure long-term financial health and success.
Peer comparison
Dec 31, 2024