Patterson-UTI Energy Inc (PTEN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 351,954 | 211,031 | -677,750 | -892,258 | -461,576 |
| Total assets | US$ in thousands | 7,420,030 | 3,143,820 | 2,957,850 | 3,299,070 | 4,439,620 |
| Operating ROA | 4.74% | 6.71% | -22.91% | -27.05% | -10.40% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $351,954K ÷ $7,420,030K
= 4.74%
Patterson-UTI Energy Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2023, the operating ROA stands at 5.85%, showing a slight decrease from the previous year's 6.38%. The positive operating ROA percentage indicates that the company is generating operating income relative to its total assets, albeit at a slightly lower rate compared to the prior year.
Looking back, there was a significant improvement in operating ROA from a negative 22.48% in 2021 to a positive 6.38% in 2022. This turnaround suggests that the company was able to enhance its operational efficiency and profitability relative to its asset base. However, profitability was impaired in 2021 as indicated by the negative operating ROA, implying that Patterson-UTI Energy Inc experienced operating losses in relation to its total assets during that period.
Further back in 2020 and 2019, the operating ROA was also negative, though to a lesser extent than in 2021. These negative figures suggest that the company's operating income was insufficient to cover its asset base during those years, indicating potential inefficiencies or challenges in the utilization of assets to generate profits.
Overall, while the recent positive operating ROA figures indicate improved operational performance in terms of asset utilization, the company needs to consistently maintain or improve upon this metric to ensure sustainable profitability and efficient use of resources.
Peer comparison
Dec 31, 2023