RPC Inc (RES)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 195,113 | 218,363 | 7,217 | -212,192 | -87,111 |
| Total stockholders’ equity | US$ in thousands | 1,022,510 | 857,735 | 641,791 | 631,567 | 830,333 |
| ROE | 19.08% | 25.46% | 1.12% | -33.60% | -10.49% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $195,113K ÷ $1,022,510K
= 19.08%
The return on equity (ROE) for RPC, Inc. has fluctuated significantly over the past five years. In 2023, the ROE stands at 18.78%, showing a decrease from the previous year's 25.09%. This indicates that the company's profitability relative to its shareholder equity has slightly decreased.
The substantial improvement from 2021 to 2022, where ROE jumped from 1.11% to 25.09%, signifies a significant positive trend where the company efficiently utilized its equity to generate profits.
However, in 2020 and 2019, RPC, Inc. experienced negative ROE figures of -33.60% and -10.53% respectively, reflecting that the company's net income was inadequate to cover shareholder equity during those periods.
Overall, RPC, Inc.'s ROE trend suggests that the company has experienced volatility in its profitability and operational efficiency in recent years. Further analysis of the company's financial performance and operational strategies would be necessary to fully understand the factors influencing these fluctuations in ROE.
Peer comparison
Dec 31, 2023