Patterson-UTI Energy Inc (PTEN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 246,292 | 154,658 | -654,545 | -803,692 | -425,703 |
| Total assets | US$ in thousands | 7,420,030 | 3,143,820 | 2,957,850 | 3,299,070 | 4,439,620 |
| ROA | 3.32% | 4.92% | -22.13% | -24.36% | -9.59% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $246,292K ÷ $7,420,030K
= 3.32%
Patterson-UTI Energy Inc's return on assets (ROA) has shown varying levels of performance over the past five years. In 2019, the company had a negative ROA of -9.59%, indicating that the company's assets were not generating sufficient returns to cover its operating expenses and investments. This negative trend continued in 2020 and 2021, with ROA figures of -24.36% and -22.13% respectively.
However, there was a significant improvement in 2022 when the ROA increased to 4.92%, signaling a positive shift in the company's ability to generate profits from its assets. This improvement was further supported in 2023, where the ROA increased to 3.32%.
Overall, while the recent positive trends in ROA are promising, it is important for Patterson-UTI Energy Inc to sustain and potentially further increase its return on assets to ensure long-term profitability and operational efficiency. It is also crucial for the company to closely monitor its asset utilization and operational effectiveness to drive consistent improvement in its ROA metric.
Peer comparison
Dec 31, 2023