Patterson-UTI Energy Inc (PTEN)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 3,465,820 | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 |
| ROE | -27.93% | 5.12% | 9.29% | -40.67% | -39.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-968,031K ÷ $3,465,820K
= -27.93%
Patterson-UTI Energy Inc's return on equity (ROE) has shown fluctuating trends over the years based on the provided data.
- In December 31, 2020, the ROE was -39.86%, indicating that the company was generating a negative return for its shareholders' equity, which may be concerning as it suggests ineffective utilization of equity to generate profits.
- This negative trend continued in December 31, 2021, with an ROE of -40.67%, implying a decrease in the company's ability to generate profit from shareholders' equity.
However, there was a turnaround in the company's performance in the subsequent years:
- By December 31, 2022, the ROE improved significantly to 9.29%, indicating a positive return on equity, which suggests that the company was becoming more efficient in utilizing its equity to generate profits.
- In December 31, 2023, while the ROE decreased from the previous year to 5.12%, it still remained positive, indicating that the company was continuing to generate a return on its shareholders' equity.
- However, in December 31, 2024, the ROE declined sharply to -27.93%, showing a reversal to negative territory, which may raise concerns regarding the company's profitability and effectiveness in utilizing equity.
In conclusion, Patterson-UTI Energy Inc's ROE has displayed a mix of positive and negative trends over the years, suggesting fluctuations in the company's ability to generate profit from shareholders' equity. Further analysis of the underlying factors affecting the ROE is warranted to assess the company's financial performance more comprehensively.
Peer comparison
Dec 31, 2024