Civitas Resources Inc (CIVI)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,204,240	3,296,250	3,775,140	923,213	215,005
Property, plant and equipment	US$ in thousands	13,794,400	11,820,200	6,611,100	5,944,840	997,311
Fixed asset turnover		0.38	0.28	0.57	0.16	0.22

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,204,240K ÷ $13,794,400K
= 0.38

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenues from its fixed assets. In the case of Civitas Resources Inc, the trend in fixed asset turnover over the past five years shows some fluctuations.

In December 2020, Civitas had a fixed asset turnover ratio of 0.22, indicating that for every dollar of fixed assets, the company generated $0.22 in sales. This ratio decreased to 0.16 by December 2021, suggesting a decline in efficiency in utilizing its fixed assets to generate revenue.

The trend reversed in December 2022 when the fixed asset turnover ratio surged to 0.57, a significant improvement compared to the previous year. This could indicate better management of fixed assets leading to increased revenue generation.

However, this improvement was not sustained, as the ratio dropped to 0.28 by December 2023 and then slightly increased to 0.38 by December 2024. This fluctuation suggests that Civitas may still face challenges in optimizing the productivity of its fixed assets consistently.

Overall, the company's fixed asset turnover ratio has shown variability over the past five years, indicating the need for Civitas Resources Inc to focus on efficiently utilizing its fixed assets to generate revenue consistently.