RPC Inc (RES)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 92,986 | 130,067 | 133,574 | 183,813 | 243,335 | 284,554 | 354,013 | 309,948 | 220,548 | 151,789 | 67,593 | 28,069 | 16,291 | -25,413 | -65,139 | -101,449 | -309,635 | -315,864 | -376,751 | -330,834 |
| Total assets | US$ in thousands | 1,386,490 | 1,330,600 | 1,325,250 | 1,297,230 | 1,314,520 | 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 |
| Operating ROA | 6.71% | 9.78% | 10.08% | 14.17% | 18.51% | 22.81% | 28.82% | 26.09% | 19.53% | 14.38% | 7.00% | 3.15% | 1.88% | -3.07% | -8.24% | -12.68% | -39.17% | -39.44% | -48.12% | -38.06% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $92,986K ÷ $1,386,490K
= 6.71%
Operating return on assets (operating ROA) is a key financial metric that evaluates a company's ability to generate profits from its operational assets. It indicates how efficiently a company is utilizing its assets to generate operating income.
Analyzing the data provided for RPC Inc, we see a significant improvement in the operating ROA over the quarters from March 31, 2020, to December 31, 2024. The operating ROA started at a negative value, indicating the company was not effectively utilizing its assets to generate operating income. However, there is a noticeable positive trend in the operating ROA starting from the first quarter of 2022, indicating efficiency improvements in asset utilization and profitability.
The operating ROA increased consistently from 3.15% in March 31, 2022, to 6.71% in December 31, 2024. This upward trend suggests that RPC Inc has been able to enhance its operational efficiency and profitability by effectively managing and utilizing its assets to generate higher operating income relative to its asset base.
Overall, the increasing trend in the operating ROA of RPC Inc reflects positive operational performance and efficiency improvements in utilizing assets to generate operating profits, which is a favorable indication for stakeholders and investors.
Peer comparison
Dec 31, 2024