RPC Inc (RES)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	97,538	253,892	197,778	-65,011	-101,665
Total assets	US$ in thousands	1,386,490	1,286,840	1,129,010	864,365	790,505
Operating ROA		7.03%	19.73%	17.52%	-7.52%	-12.86%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $97,538K ÷ $1,386,490K
= 7.03%

RPC Inc's operating return on assets (operating ROA) has shown significant fluctuations over the past five years.

At the end of 2020, the company reported a negative operating ROA of -12.86%, indicating that its operating earnings were not generating a satisfactory return relative to its assets. However, by the end of 2021, there was a slight improvement, with the operating ROA improving to -7.52%.

The following two years saw a notable turnaround for RPC Inc, as the operating ROA surged to 17.52% at the end of 2022 and further increased to 19.73% by the end of 2023. These positive trends suggest that the company was able to significantly increase its profitability relative to its asset base.

However, there was a slight dip in performance by the end of 2024, with the operating ROA decreasing to 7.03%. While this decrease is not as significant, it is essential for the company to monitor its operational efficiency and asset utilization to ensure continued profitability.

Overall, RPC Inc's recent performance indicates a mixed record on operating return on assets, with a notable rebound in profitability in the last two years following a challenging period. Future analysis should consider factors influencing this performance to assess the company's operational effectiveness and financial sustainability.