Cactus Inc (WHD)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 311,693 315,691 326,502 292,329 444,880 412,751 376,444 372,163 174,748 152,239 121,709 94,782 75,427 58,138 49,928 41,489 70,039 97,701 132,268 174,843
Total assets US$ in thousands 1,739,330 1,681,720 1,626,390 1,575,890 1,522,560 1,464,150 1,476,400 1,520,270 1,118,900 1,095,200 1,070,120 1,026,190 982,078 963,930 944,750 877,865 815,594 811,488 822,152 850,095
Operating ROA 17.92% 18.77% 20.08% 18.55% 29.22% 28.19% 25.50% 24.48% 15.62% 13.90% 11.37% 9.24% 7.68% 6.03% 5.28% 4.73% 8.59% 12.04% 16.09% 20.57%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $311,693K ÷ $1,739,330K
= 17.92%

Operating return on assets (operating ROA) is a financial ratio that indicates a company's ability to generate operating income from its assets. Based on the data provided for Cactus Inc, we observe fluctuations in the operating ROA over time.

From March 31, 2020, to March 31, 2022, the operating ROA for Cactus Inc steadily decreased from 20.57% to 9.24%. This decline could suggest challenges in effectively utilizing the company's assets to generate operating income during this period.

However, from June 30, 2022, to December 31, 2024, there was a notable improvement in the operating ROA, increasing from 11.37% to 17.92%. This upward trend indicates a positive turnaround in the company's ability to generate operating income relative to its total assets.

The peak in the operating ROA of 29.22% on December 31, 2023, followed by a slight decline in the subsequent quarters, may indicate a temporary spike in profitability, which the company may aim to sustain or improve upon in the future.

Overall, the fluctuation in Cactus Inc's operating ROA highlights the importance of efficiently managing assets to enhance operating performance and profitability. Further analysis of the company's operational efficiency and asset utilization may provide insights into sustainable growth prospects.