Patterson-UTI Energy Inc (PTEN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.29% | 95.42% | 88.96% | 51.05% | 92.28% |
| Operating profit margin | 8.59% | 8.06% | -51.48% | -81.85% | -19.35% |
| Pretax margin | 7.51% | 6.41% | -54.48% | -85.40% | -22.23% |
| Net profit margin | 6.01% | 5.90% | -49.72% | -73.72% | -17.85% |
The profitability ratios of Patterson-UTI Energy Inc over the past five years show a mixed trend.
- Gross profit margin has been relatively stable, ranging from 23.40% to 33.23%. This indicates the company's ability to control direct costs related to production and sales.
- Operating profit margin has shown improvement over the years, with a significant recovery from negative figures in 2020 and 2021 to 10.46% in 2023. This suggests more efficient management of operating expenses.
- Pretax margin also reflects a positive trend, with steady improvement from -82.81% in 2020 to 7.41% in 2023. This indicates better control over non-operating expenses and income.
- Net profit margin has shown improvements, recovering from negative figures in 2020 and 2021 to positive margins in subsequent years. The margin increased from -71.49% in 2020 to 5.94% in 2023, indicating better overall profitability after periods of losses.
Overall, the profitability ratios of Patterson-UTI Energy Inc demonstrate efforts to enhance operational efficiency and profitability, as evidenced by the improvements in operating profit margin, pretax margin, and net profit margin over the past few years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.74% | 6.71% | -22.91% | -27.05% | -10.40% |
| Return on assets (ROA) | 3.32% | 4.92% | -22.13% | -24.36% | -9.59% |
| Return on total capital | 5.97% | 8.34% | -27.43% | -30.51% | -11.98% |
| Return on equity (ROE) | 5.12% | 9.29% | -40.67% | -39.86% | -15.02% |
Patterson-UTI Energy Inc's profitability ratios show a mixed performance over the past five years. Operating return on assets (Operating ROA) has fluctuated, with a decrease from 6.38% in 2022 to 5.85% in 2023. This ratio indicates the company's ability to generate profits from its assets before interest and taxes.
Return on assets (ROA) declined from 4.92% in 2022 to 3.32% in 2023, suggesting a decrease in the company's efficiency in generating profits relative to its total assets. The negative values in 2021 and 2020 indicate that the company faced challenges in effectively utilizing its assets to generate profits during those years.
Return on total capital also shows a decline, dropping from 8.03% in 2022 to 7.10% in 2023. This ratio reflects the company's ability to generate returns for both equity and debt holders.
Return on equity (ROE) experienced a notable drop from 9.29% in 2022 to 5.12% in 2023. ROE indicates the profitability of the company from the perspective of common equity shareholders and the efficiency of the company in using shareholder funds to generate profits.
Overall, Patterson-UTI Energy Inc's profitability ratios highlight inconsistency in performance over the past five years, with some years showing positive returns, while others show significant declines. Further investigation into the company's operational and financial strategies may be needed to address the fluctuations in profitability.