RPC Inc (RES)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	91,444	195,113	218,363	7,217	-212,192
Total stockholders’ equity	US$ in thousands	1,078,290	1,022,510	857,735	641,791	631,567
ROE		8.48%	19.08%	25.46%	1.12%	-33.60%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $91,444K ÷ $1,078,290K
= 8.48%

Based on the provided data for RPC Inc's return on equity (ROE) over the years, we observe significant fluctuations in the company's performance:

1. In 2020, RPC Inc reported a negative ROE of -33.60%, indicating that the company's net income was insufficient to generate a positive return for shareholders.

2. By the end of 2021, the company's ROE improved slightly to 1.12%, reflecting a marginal return for shareholders.

3. The performance significantly improved in 2022, with an ROE of 25.46%, suggesting that RPC Inc effectively utilized its equity to generate profits for shareholders.

4. In 2023, the ROE dipped slightly to 19.08%, but still relatively high compared to previous years, indicating continued profitability.

5. However, by the end of 2024, the ROE decreased further to 8.48%, showing a decline in the company's ability to generate returns on shareholder equity.

Overall, while RPC Inc experienced fluctuations in its ROE over the years, it is crucial for the company to sustain profitability and efficiently utilize its equity to enhance shareholder value in the long term.