Liberty Oilfield Services Inc (LBRT)

Return on assets (ROA)

		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
Total assets	US$ in thousands	3,033,560	2,575,930	2,040,660	1,889,940	1,283,430
ROA		18.34%	15.51%	-8.78%	-6.12%	3.04%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $556,317K ÷ $3,033,560K
= 18.34%

The return on assets (ROA) for Liberty Energy Inc has shown fluctuating trends over the past five years. In 2023, the ROA increased significantly to 18.34%, indicating that the company generated a higher return on its assets compared to the previous year. This improvement suggests better efficiency in utilizing its assets to generate profits.

In 2022, the ROA was 15.51%, highlighting a relatively strong performance in asset utilization. The company continued to demonstrate an ability to generate profit from its assets, albeit at a slightly lower rate than in 2023.

However, in 2021 and 2020, Liberty Energy Inc experienced negative ROA figures of -8.78% and -6.12% respectively. These negative values suggest that the company's assets were not effectively utilized to generate profits during these years, potentially indicating inefficiencies in operations or significant losses.

In 2019, the ROA was 3.04%, indicating a moderate level of asset efficiency and profit generation.

Overall, Liberty Energy Inc's ROA has shown volatility over the years, with a notable improvement in 2023 compared to previous years. It is essential for the company to focus on consistently improving its asset utilization to ensure sustainable profitability and operational efficiency in the long term.