Liberty Oilfield Services Inc (LBRT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	760,579	495,890	-181,224	-177,026	103,597
Total assets	US$ in thousands	3,033,560	2,575,930	2,040,660	1,889,940	1,283,430
Operating ROA		25.07%	19.25%	-8.88%	-9.37%	8.07%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $760,579K ÷ $3,033,560K
= 25.07%

Operating Return on Assets (Operating ROA) is a key financial ratio used to evaluate a company's profitability and efficiency in generating profits from its assets. In the case of Liberty Energy Inc, the trend of Operating ROA over the past five years reflects fluctuations in the company's operational performance.

In 2023, Liberty Energy Inc's Operating ROA improved significantly to 24.84%, indicating a strong ability to generate profits from its assets compared to the previous year. This increase may suggest improved operational efficiency, better asset utilization, or cost management.

In 2022, the Operating ROA was 19.07%, showing a positive trend compared to the negative figures seen in 2021 and 2020. The company managed to effectively increase its profitability relative to its asset base in this period.

However, in 2021 and 2020, Liberty Energy Inc experienced negative Operating ROA figures of -8.84% and -9.39% respectively, indicating that the company was not effectively utilizing its assets to generate profits. This could be attributed to various factors such as declining revenues, higher operating costs, or inefficient asset management.

In 2019, the company's Operating ROA was 8.27%, indicating a moderately positive performance in terms of asset profitability.

Overall, Liberty Energy Inc's Operating ROA performance has shown volatility over the past five years, with significant improvements in recent years following negative trends. It is important for the company to continue focusing on operational efficiency and effective asset management to sustain and build upon its profitability in the future.