Patterson-UTI Energy Inc (PTEN)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -968,031 | 246,292 | 154,658 | -654,545 | -803,692 |
| Revenue | US$ in thousands | 5,377,910 | 4,146,460 | 2,619,410 | 1,316,530 | 1,090,150 |
| Net profit margin | -18.00% | 5.94% | 5.90% | -49.72% | -73.72% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $-968,031K ÷ $5,377,910K
= -18.00%
Net profit margin, a key financial metric indicating the percentage of each dollar of revenue that translates into profit after all expenses are deducted, is a critical measure of a company's profitability.
Looking at the data for Patterson-UTI Energy Inc, we observe a fluctuating trend in the net profit margin over the years. Starting from a significantly negative level of -73.72% in December 2020, the margin improved to -49.72% in December 2021, which indicates the company was still incurring losses.
However, the company demonstrated a positive turnaround in the subsequent years, achieving a net profit margin of 5.90% in December 2022 and a slightly higher margin of 5.94% in December 2023. These positive margins suggest that Patterson-UTI Energy Inc was able to generate profits relative to its revenue during these periods.
Nonetheless, the profitability dipped again in December 2024 with a net profit margin of -18.00%. This negative figure may raise concerns regarding the company's ability to effectively manage costs and generate profits, indicating a potential decline in profitability during that period.
In conclusion, while the company showcased an improvement in profitability between 2022 and 2023, the negative net profit margins in other years highlight the importance of closely monitoring Patterson-UTI Energy Inc's financial performance and implementing strategies to sustain profitability in the long run.
Peer comparison
Dec 31, 2024