Civitas Resources Inc (CIVI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	5,094,450	4,839,420	4,526,829	3,865,899	3,296,241	3,066,349	3,106,445	3,597,935	3,775,144	3,476,852	2,665,287	1,674,922	923,213	476,935	347,546	228,560	215,005	232,434	248,784	298,938
Property, plant and equipment	US$ in thousands	13,794,400	13,911,300	13,957,600	13,995,900	11,820,200	11,767,600	6,706,840	6,679,060	6,611,100	6,461,290	6,348,980	6,310,730	5,944,840	1,578,450	1,558,740	1,011,710	997,311	1,020,900	1,042,630	1,043,180
Fixed asset turnover		0.37	0.35	0.32	0.28	0.28	0.26	0.46	0.54	0.57	0.54	0.42	0.27	0.16	0.30	0.22	0.23	0.22	0.23	0.24	0.29

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,094,450K ÷ $13,794,400K
= 0.37

The fixed asset turnover ratio for Civitas Resources Inc has fluctuated over the past few years. It declined from 0.29 in March 2020 to 0.16 in December 2021, indicating a decrease in how efficiently the company is utilizing its fixed assets to generate sales.

However, there was a significant improvement in the ratio starting from June 2022 when it increased to 0.42 and continued to rise steadily to reach 0.37 by December 2024. This upward trend suggests that the company has been able to generate more revenue from its fixed assets during this period.

Overall, the increase in fixed asset turnover ratio indicates improved efficiency in utilizing fixed assets to generate sales for Civitas Resources Inc, potentially leading to increased profitability and better overall financial performance.