Liberty Oilfield Services Inc (LBRT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	760,579	835,289	813,045	717,171	495,890	233,991	11,442	-135,166	-181,224	-172,157	-187,993	-225,531	-177,026	-140,985	-59,013	65,732	103,597	163,471	219,146	282,154
Total assets	US$ in thousands	3,033,560	3,089,120	2,924,500	2,760,620	2,575,930	2,525,160	2,335,130	2,190,880	2,040,660	1,966,090	1,975,130	1,916,780	1,889,940	1,058,750	1,051,120	1,298,550	1,283,430	1,295,230	1,303,380	1,268,860
Operating ROA		25.07%	27.04%	27.80%	25.98%	19.25%	9.27%	0.49%	-6.17%	-8.88%	-8.76%	-9.52%	-11.77%	-9.37%	-13.32%	-5.61%	5.06%	8.07%	12.62%	16.81%	22.24%

December 31, 2023 calculation

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

The operating return on assets (operating ROA) of Liberty Energy Inc has shown an overall increasing trend from Q1 2022 to Q4 2023. The company's operating ROA was at a low of -5.89% in Q1 2022, but steadily improved to reach 24.84% in Q4 2023. This suggests that the company has been more efficient in generating operating income relative to its total assets over time.

The substantial improvement in operating ROA indicates that Liberty Energy Inc has been able to effectively utilize its assets to generate operating profits. This could be attributed to better operational efficiency, cost management, revenue growth, or a combination of these factors. The positive trend in operating ROA reflects well on the company's operational performance and suggests that it has been successful in maximizing returns from its asset base.

However, it is important to note that while the trend is positive, fluctuations in operating ROA between quarters should be closely monitored to understand the underlying factors driving the changes. Overall, the increasing trend in operating ROA for Liberty Energy Inc indicates improving profitability and efficiency in utilizing its assets for operations.