RPC Inc (RES)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	113,266	152,004	153,437	199,592	281,229	342,423	409,142	383,640	289,599	196,442	112,936	52,257	18,584	-22,581	-61,913	-100,373	-309,058	-315,963	-378,403	-330,532
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,078,290	1,072,340	1,059,760	1,033,290	1,022,510	997,756	987,402	927,695	857,735	773,410	706,662	657,768	641,791	630,783	624,134	623,176	631,567	637,555	648,653	671,235
Return on total capital		10.50%	14.17%	14.48%	19.32%	27.50%	34.32%	41.44%	41.35%	33.76%	25.40%	15.98%	7.94%	2.90%	-3.58%	-9.92%	-16.11%	-48.94%	-49.56%	-58.34%	-49.24%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $113,266K ÷ ($—K + $1,078,290K)
= 10.50%

RPC Inc's return on total capital has shown a fluctuating trend over the past few years, starting off in negative territory in early 2020 and gradually improving to positive figures by the end of 2021. There was a significant improvement in the return on total capital from March 2022 to June 2023, where it more than doubled from 7.94% to 41.44%.

However, the return on total capital experienced a slight decline in the following quarters, dropping to 10.50% by December 31, 2024. Despite the fluctuations, the return on total capital generally showed an upward trajectory over this period, indicating the company's ability to generate profit relative to the total capital invested, but with some variability in performance. Further analysis would be needed to explore the factors driving these changes in returns.