Civitas Resources Inc (CIVI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,296,250	3,775,140	923,213	215,005	312,095
Property, plant and equipment	US$ in thousands	11,820,200	6,611,100	5,944,840	997,311	1,053,580
Fixed asset turnover		0.28	0.57	0.16	0.22	0.30

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,296,250K ÷ $11,820,200K
= 0.28

The fixed asset turnover for Civitas Resources Inc has shown fluctuations over the past five years. In 2023, the fixed asset turnover ratio decreased to 0.29 from 0.57 in 2022, indicating a decrease in the company's ability to generate sales from its fixed assets.

Comparing with previous years, the ratio was relatively low in 2021 at 0.16, then increased in 2022 before declining again in 2023. Despite the fluctuation, the company's ability to utilize its fixed assets efficiently seems to vary year by year.

Overall, a lower fixed asset turnover ratio may suggest inefficiency in asset utilization, while a higher ratio would indicate better efficiency in generating sales from fixed assets. It is essential for Civitas Resources Inc to investigate the reasons behind the fluctuations to improve its operational efficiency and optimize the utilization of its fixed assets for improved financial performance.