Civitas Resources Inc (CIVI)

Total 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
Total assets	US$ in thousands	14,097,300	7,971,400	6,741,030	1,182,810	1,206,320
Total asset turnover		0.23	0.47	0.14	0.18	0.26

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $3,296,250K ÷ $14,097,300K
= 0.23

Civitas Resources Inc's total asset turnover has fluctuated significantly over the past five years. The total asset turnover ratio measures the company's ability to generate revenue relative to its total assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate sales.

In 2023, the total asset turnover decreased to 0.25 from 0.48 in 2022, indicating a decline in the company's efficiency in generating revenue from its assets. This could suggest challenges in effectively utilizing its assets to drive sales.

The significant decrease in total asset turnover in 2021 to 0.14 implies a notable drop in the company's ability to generate revenue from its assets, possibly due to inefficiencies or underutilization of assets during that period.

In 2020 and 2019, the total asset turnover ratios were 0.18 and 0.26, respectively. While these ratios are higher than 2021, they still indicate room for improvement in utilizing assets more effectively to drive revenue.

Overall, Civitas Resources Inc's total asset turnover has been volatile, and a downward trend in recent years suggests a need for the company to focus on improving asset utilization efficiency to enhance revenue generation.