RPC Inc (RES)

Return on assets (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
Net income (ttm)	US$ in thousands	91,444	118,941	118,462	151,056	195,113	241,859	292,882	274,808	218,363	143,697	79,623	31,958	7,217	-15,361	-37,064	-61,431	-212,192	-225,315	-278,059	-246,795
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
ROA		6.60%	8.94%	8.94%	11.64%	14.84%	19.39%	23.85%	23.14%	19.34%	13.61%	8.25%	3.59%	0.83%	-1.86%	-4.69%	-7.68%	-26.84%	-28.13%	-35.52%	-28.40%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $91,444K ÷ $1,386,490K
= 6.60%

Return on assets (ROA) is a key financial metric that indicates how efficiently a company is using its assets to generate profit. Looking at the data provided for RPC Inc, we observed a trend of negative ROA figures from March 2020 to December 2021, indicating that the company was not effectively utilizing its assets to generate profits during this period.

However, starting from March 2022, RPC Inc's ROA turned positive, indicating an improvement in the company's ability to generate earnings from its assets. The ROA showed a steady increase from 3.59% in March 2022 to 8.94% in June 2024 before stabilizing at 6.60% by December 2024.

This positive trend in ROA suggests that RPC Inc has become more efficient in utilizing its assets to generate profits over time, which could be a positive sign for investors and stakeholders. It is essential for the company to continue this trend to ensure sustained profitability and value creation in the future.