Civitas Resources Inc (CIVI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.63% | 74.16% | 58.58% | 24.38% | 79.64% |
| Operating profit margin | -12.35% | 26.28% | -7.34% | -82.23% | 50.38% |
| Pretax margin | 30.32% | 43.81% | 27.27% | 19.99% | 21.49% |
| Net profit margin | 23.79% | 33.06% | 19.38% | 48.15% | 21.49% |
Civitas Resources Inc has demonstrated consistent gross profit margins of 100% over the past five years, indicating efficient cost management and solid pricing strategies. However, the company's operating profit margin fluctuated significantly, decreasing from 53.46% in 2022 to 35.17% in 2023. This suggests potential challenges in controlling operating expenses or generating revenue.
The pretax margin also showed variability, with a notable decrease from 43.62% in 2022 to 28.73% in 2023. This could imply increased non-operational expenses or a decline in profitability before taxes.
The net profit margin experienced fluctuations as well, with a substantial decrease from 32.92% in 2022 to 22.54% in 2023. This raises concerns about the company's bottom-line profitability and its ability to convert revenue into net income. Overall, a deeper analysis of Civitas Resources Inc's cost structure and revenue streams may be required to understand the factors driving these changes in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.89% | 12.45% | -1.01% | -14.95% | 13.03% |
| Return on assets (ROA) | 5.56% | 15.66% | 2.65% | 8.75% | 5.56% |
| Return on total capital | 10.78% | 29.23% | 5.08% | 4.31% | 15.46% |
| Return on equity (ROE) | 12.69% | 23.22% | 3.84% | 9.90% | 7.16% |
Civitas Resources Inc's profitability ratios depict varying levels of performance over the past five years. The Operating return on assets (Operating ROA) has fluctuated, showing a significant increase in 2022, followed by a decline in 2023. This ratio indicates the company's ability to generate operating income relative to its total assets.
The Return on assets (ROA) also demonstrates fluctuations, with a peak in 2022 and a subsequent decrease in 2023. ROA measures the company's overall profitability relative to its total assets, reflecting how efficiently management is utilizing its assets to generate earnings.
Looking at the Return on total capital, there is a similar trend of fluctuation, with high performance in 2022 followed by a decline in 2023. This ratio evaluates the company's ability to generate profits from both equity and debt capital investments.
In terms of Return on equity (ROE), Civitas Resources Inc has shown improvement in 2023 compared to the previous years. ROE measures the company's ability to generate profits from shareholders' equity, showcasing how effectively the company is using equity to generate returns for shareholders.
Overall, while the company has shown diverse performance in its profitability ratios over the past five years, it is essential for stakeholders to monitor these metrics to assess the company's financial health and efficiency in utilizing its resources for generating profits.