Cactus Inc (WHD)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 185,407 169,171 110,174 67,470 59,215
Total assets US$ in thousands 1,739,330 1,522,560 1,118,900 982,078 815,594
ROA 10.66% 11.11% 9.85% 6.87% 7.26%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $185,407K ÷ $1,739,330K
= 10.66%

Based on the data provided, Cactus Inc's return on assets (ROA) has shown variation over the past five years. In December 31, 2020, the ROA was at 7.26%, indicating that for every dollar of assets, the company generated a profit of 7.26 cents.

However, in the following year, December 31, 2021, the ROA decreased slightly to 6.87%, potentially signaling a decrease in the company's efficiency in generating profits from its assets.

Subsequently, there was a significant improvement in ROA as of December 31, 2022, reaching 9.85%. This suggests that the company was able to increase its profitability relative to its total assets during that period.

The trend continued to improve in the subsequent years, with ROA reaching 11.11% as of December 31, 2023, and then slightly decreasing to 10.66% by December 31, 2024. These figures indicate that the company has been effectively utilizing its assets to generate profits, although there was a slight dip in profitability in the most recent year.

Overall, Cactus Inc's ROA has shown both positive and negative fluctuations over the five-year period, with the company experiencing periods of improved profitability and slight declines in efficiency in generating returns from its assets. It is essential for stakeholders to monitor these trends and assess the company's asset management strategies to ensure sustainable profitability in the future.