Cactus Inc (WHD)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 289,613 264,366 174,748 75,427 70,039
Total assets US$ in thousands 1,739,330 1,522,560 1,118,900 982,078 815,594
Operating ROA 16.65% 17.36% 15.62% 7.68% 8.59%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $289,613K ÷ $1,739,330K
= 16.65%

Based on the provided data, Cactus Inc's operating return on assets (operating ROA) has shown varied performance over the years. The operating ROA was 8.59% on December 31, 2020, which decreased to 7.68% by December 31, 2021. However, there was a significant improvement in performance in the following years, with the operating ROA increasing to 15.62% on December 31, 2022, 17.36% on December 31, 2023, and 16.65% on December 31, 2024.

This demonstrates that Cactus Inc has been able to effectively generate operating income relative to its total assets in the recent years, showing a positive trend in its operational efficiency and performance. The notable increase in operating ROA from 2021 to 2023 indicates an improvement in the company's ability to utilize its assets to generate operating profits. However, the slight decrease in operating ROA in 2024 compared to the previous year suggests a possible dip in profitability or efficiency in that period.

Overall, Cactus Inc's operating ROA analysis indicates a positive performance trend with some fluctuations, highlighting the company's ability to generate operating income in relation to its asset base over the analyzed period.