RPC Inc (RES)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.11% | 17.90% | 1.74% | -49.97% | -4.27% |
| Operating profit margin | 15.05% | 17.87% | 1.86% | -50.95% | -9.32% |
| Pretax margin | 15.74% | 17.98% | 1.88% | -50.91% | -9.23% |
| Net profit margin | 11.99% | 13.55% | 0.83% | -34.91% | -7.11% |
Profitability ratios provide insights into a company's ability to generate profits relative to its revenues and operating costs.
1. Gross Profit Margin: RPC, Inc.'s gross profit margin has generally improved over the past five years, from 24.77% in 2019 to 32.64% in 2023. This indicates the company has been more efficient in controlling its cost of goods sold.
2. Operating Profit Margin: The operating profit margin has also shown improvement over the years, with a notable increase from -16.99% in 2020 to 15.70% in 2023. This improvement suggests that RPC, Inc. has been able to better manage its operating expenses.
3. Pretax Margin: RPC, Inc.'s pretax margin has fluctuated significantly, with positive trends observed in recent years. The pretax margin increased from -51.72% in 2020 to 15.84% in 2023. This indicates that the company has been able to more effectively generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin has also improved notably over the years, from -35.47% in 2020 to 11.87% in 2023. This indicates that RPC, Inc. has been more efficient in managing its overall expenses, including taxes, interest, and other non-operating costs, to generate net income.
Overall, the trend in RPC, Inc.'s profitability ratios reflects a positive performance in recent years, with improvements in gross profit, operating profit, pretax, and net profit margins. This suggests enhanced operational efficiency and profitability for the company.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.04% | 25.50% | 1.88% | -39.17% | -10.85% |
| Return on assets (ROA) | 15.16% | 19.34% | 0.83% | -26.84% | -8.27% |
| Return on total capital | 25.09% | 33.84% | 2.86% | -48.94% | -13.58% |
| Return on equity (ROE) | 19.08% | 25.46% | 1.12% | -33.60% | -10.49% |
RPC, Inc.'s profitability ratios demonstrate a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has shown fluctuations, improving from 2019 (-3.39%) to 2020 (-12.86%) and significantly increasing to 24.98% in 2022 before dropping to 19.73% in 2023. This ratio indicates the company's ability to generate profits from its assets.
2. Return on assets (ROA) reflects a similar trend, with the ratio improving gradually from -8.30% in 2019 to 19.06% in 2022 and then declining to 14.92% in 2023. ROA measures how efficiently the company is utilizing its assets to generate earnings.
3. Return on total capital has also shown fluctuations, with significant improvements seen from -16.10% in 2020 to 32.88% in 2022 and then declining to 24.80% in 2023. This ratio indicates the company's ability to generate profits from both debt and equity investments.
4. Return on equity (ROE) demonstrates a similar pattern, with a notable improvement from -10.53% in 2019 to 25.09% in 2022 before decreasing to 18.78% in 2023. ROE reflects the company's ability to generate profits for its shareholders based on their investments.
Overall, RPC, Inc. has experienced fluctuations in its profitability ratios, with some ratios showing improvements over the years, indicating the company's efforts to enhance profitability and efficiency in asset utilization and capital management. However, the decreasing trend in some ratios in the most recent year warrants further investigation to understand the factors impacting the company's profitability.