Liberty Oilfield Services Inc (LBRT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 316,010 | 556,317 | 399,602 | -179,244 | -115,583 |
| Total stockholders’ equity | US$ in thousands | 1,978,870 | 1,841,410 | 1,495,020 | 1,213,240 | 1,150,640 |
| ROE | 15.97% | 30.21% | 26.73% | -14.77% | -10.05% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $316,010K ÷ $1,978,870K
= 15.97%
Based on the provided data, Liberty Oilfield Services Inc's return on equity (ROE) has shown significant fluctuations over the past five years. The ROE was negative in 2020 and 2021, indicating that the company's net income was insufficient to generate a positive return for shareholders.
However, there was a notable improvement in 2022 and 2023, with the ROE turning positive and reaching 26.73% and 30.21% respectively. This suggests that the company was able to effectively utilize shareholder equity to generate profit during those years.
In 2024, although the ROE decreased from the previous year, it remained healthy at 15.97%, indicating that Liberty Oilfield Services Inc continued to deliver a satisfactory return on equity for its shareholders.
Overall, the fluctuating trend in ROE indicates varying levels of profitability and efficiency in utilizing shareholder funds over the years, highlighting the importance of monitoring financial performance consistently.
Peer comparison
Dec 31, 2024