RPC Inc (RES)

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	244,950	287,940	16,291	-309,635	-114,288
Total assets	US$ in thousands	1,286,840	1,129,010	864,365	790,505	1,053,220
Operating ROA		19.04%	25.50%	1.88%	-39.17%	-10.85%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $244,950K ÷ $1,286,840K
= 19.04%

The operating return on assets (operating ROA) for RPC, Inc. has varied significantly over the past five years. In 2023, the operating ROA was 19.73%, showing a decrease from the previous year's figure of 24.98%. This decline may indicate a slight decrease in the company's operating efficiency and profitability in utilizing its assets to generate earnings.

In 2021, the operating ROA improved to 0.63% from negative figures in the two preceding years, suggesting a turnaround in the company's operational performance. However, the ROA remained relatively low, indicating that RPC, Inc. may still be facing challenges in effectively utilizing its assets to generate profits.

The significant negative operating ROA figures in 2020 (-12.86%) and 2019 (-3.39%) are concerning and may reflect difficulties or inefficiencies in the company's operations during those periods.

Overall, RPC, Inc.'s operating ROA has shown fluctuations, with both positive and negative trends observed over the past five years. It would be essential for the company to closely monitor its operational efficiency and asset utilization to sustain or improve its profitability in the future.