RPC Inc (RES)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	244,950	308,057	377,516	355,562	287,940	195,678	111,482	49,847	16,291	-25,413	-65,139	-101,449	-309,635	-315,864	-376,751	-330,834	-114,288	-66,763	80,429	147,071
Total assets	US$ in thousands	1,286,840	1,247,370	1,228,190	1,187,830	1,129,010	1,055,580	965,079	891,168	864,365	826,640	790,206	800,073	790,505	800,877	782,868	869,132	1,053,220	1,109,860	1,223,970	1,226,490
Operating ROA		19.04%	24.70%	30.74%	29.93%	25.50%	18.54%	11.55%	5.59%	1.88%	-3.07%	-8.24%	-12.68%	-39.17%	-39.44%	-48.12%	-38.06%	-10.85%	-6.02%	6.57%	11.99%

December 31, 2023 calculation

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

RPC, Inc.'s operating return on assets (operating ROA) has shown an improving trend over the past eight quarters. The operating ROA increased from 4.20% in Q1 2022 to 31.65% in Q2 2023, indicating a strong operational performance and efficiency in generating profits from its assets. This trend suggests that the company has been effectively utilizing its assets to generate operating income.

The consistent increase in operating ROA from Q1 2023 to Q2 2023, reaching a peak of 31.65%, reflects a significant improvement in the company's operational efficiency and profitability. This indicates that RPC, Inc. has been able to generate more profit per dollar of assets employed in its operations. The upward trend in operating ROA is a positive indicator of the company's operational performance and management's ability to maximize returns from its assets over the analyzed period.

Overall, the improving trend in RPC, Inc.'s operating ROA signals that the company has been successful in enhancing its operational efficiency, generating higher returns on its assets, and creating value for its shareholders.