Cactus Inc (WHD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 264,366 | 174,748 | 75,427 | 70,039 | 183,150 |
| Total assets | US$ in thousands | 1,522,560 | 1,118,900 | 982,078 | 815,594 | 834,964 |
| Operating ROA | 17.36% | 15.62% | 7.68% | 8.59% | 21.94% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $264,366K ÷ $1,522,560K
= 17.36%
Cactus Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2023, the operating ROA increased to 17.36% from 15.62% in 2022, indicating improved efficiency in generating operating income relative to its assets. This suggests that the company managed its operations effectively to generate greater returns based on its asset base.
Comparing to the previous years, the operating ROA was significantly lower in 2021 at 7.68% and further dropped to 8.59% in 2020, signaling potential inefficiencies in asset utilization during those periods. However, the trend reversed in 2019 when the operating ROA was notably higher at 21.94%, indicating better operational performance that year.
Overall, it is essential for Cactus Inc to sustain and potentially enhance its operating ROA to ensure efficient utilization of its assets and maximize profitability in the long term. Further analysis of the company's operational strategies, asset management practices, and market conditions would be beneficial to understand the factors influencing the variations in operating ROA over the years.
Peer comparison
Dec 31, 2023