Patterson-UTI Energy Inc (PTEN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.57% | 91.18% | 95.42% | 88.96% | 51.05% |
| Operating profit margin | -16.54% | 8.49% | 8.06% | -51.48% | -81.85% |
| Pretax margin | -17.82% | 7.41% | 6.41% | -54.48% | -85.40% |
| Net profit margin | -18.00% | 5.94% | 5.90% | -49.72% | -73.72% |
Patterson-UTI Energy Inc's gross profit margin has been showing an increasing trend over the past five years, starting at 51.05% in 2020 and reaching 89.57% in 2024. This indicates that the company has been able to improve its efficiency in controlling the cost of goods sold relative to its revenue.
However, the operating profit margin has been inconsistent, with significant fluctuations over the years. The company experienced negative margins in 2020 and 2021, but this improved in 2022 and 2023, before dropping again in 2024. This suggests fluctuations in operating expenses relative to revenue.
The pretax margin also reflects volatility, with negative values in 2020 and 2021, though turning positive in 2022 and 2023, then dropping back into negative territory in 2024. This indicates fluctuations in the company's profitability before accounting for taxes.
Similarly, the net profit margin shows variability, with negative margins in 2020 and 2021, turning positive in 2022 and 2023, before dropping back into negative territory in 2024. This fluctuation may reflect inconsistent net income generation relative to revenue.
Overall, while Patterson-UTI Energy Inc has shown improvement in gross profit margins, its operating, pretax, and net profit margins have been volatile, indicating potential challenges in controlling expenses and maintaining consistent profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -15.25% | 4.74% | 6.71% | -22.91% | -27.05% |
| Return on assets (ROA) | -16.59% | 3.32% | 4.92% | -22.13% | -24.36% |
| Return on total capital | -18.99% | 5.97% | 8.34% | -27.43% | -30.51% |
| Return on equity (ROE) | -27.93% | 5.12% | 9.29% | -40.67% | -39.86% |
Patterson-UTI Energy Inc's profitability ratios have displayed fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA improved significantly from -27.05% in 2020 to 6.71% in 2022. However, it decreased to 4.74% in 2023 and further to -15.25% in 2024. This indicates that the company's operating performance relative to its total assets improved initially but deteriorated in the later years.
2. Return on Assets (ROA):
- The ROA also showed a similar trend, with a negative return in 2020 and 2021, turning positive at 4.92% in 2022, followed by a decline to 3.32% in 2023 and -16.59% in 2024. This ratio reflects the company's overall ability to generate profits from its assets.
3. Return on Total Capital:
- The Return on Total Capital ratio followed a comparable pattern, with negative returns in 2020 and 2021, improving to 8.34% in 2022, before decreasing to 5.97% in 2023 and -18.99% in 2024. This metric assesses the efficiency of the company in generating returns for both equity and debt holders.
4. Return on Equity (ROE):
- The ROE was negative in 2020 and 2021, then increased to 9.29% in 2022, before dropping to 5.12% in 2023 and -27.93% in 2024. ROE indicates the profitability generated for shareholders from the equity invested in the company.
Overall, Patterson-UTI Energy Inc's profitability ratios have experienced variability, with improvements followed by declines in subsequent years. It is essential for the company to focus on sustainable profitability and efficiency in utilizing its assets and capital to enhance shareholder value.