Civitas Resources Inc (CIVI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.16% | 58.63% | 74.16% | 58.58% | 24.38% |
| Operating profit margin | -15.47% | -12.35% | 26.28% | -7.34% | -82.23% |
| Pretax margin | 20.80% | 30.32% | 43.81% | 27.27% | 19.99% |
| Net profit margin | 16.12% | 23.79% | 33.06% | 19.38% | 48.15% |
Civitas Resources Inc's profitability has shown significant improvement over the years, as evidenced by its gross profit margin increasing from 24.38% in 2020 to 56.16% in 2024. This indicates the company's ability to efficiently manage its production costs and generate a higher percentage of revenue as gross profit.
Similarly, the operating profit margin has also shown improvement, moving from a negative margin of -82.23% in 2020 to -15.47% in 2024. While the company still experienced operating losses in some years, the trend suggests better cost control and operational efficiency.
The pretax margin reflects Civitas Resources Inc's ability to generate profits before accounting for taxes, with the margin increasing from 19.99% in 2020 to 20.80% in 2024. This indicates the company's performance in generating profits from its core business activities.
However, the net profit margin, which measures the company's overall profitability after all expenses have been deducted, decreased from 48.15% in 2020 to 16.12% in 2024. This decline may be attributed to various factors such as increased operating costs, tax impacts, or changes in revenue streams.
Overall, Civitas Resources Inc has shown improvement in its profitability metrics, albeit with some fluctuations in net profit margin. Continued focus on cost management and revenue generation strategies may be necessary to sustain and enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.39% | -2.89% | 12.45% | -1.01% | -14.95% |
| Return on assets (ROA) | 5.61% | 5.56% | 15.66% | 2.65% | 8.75% |
| Return on total capital | 13.84% | 10.78% | 29.23% | 5.08% | 4.31% |
| Return on equity (ROE) | 12.65% | 12.69% | 23.22% | 3.84% | 9.90% |
Civitas Resources Inc's profitability ratios have shown fluctuations over the years, as reflected in the data provided.
1. Operating return on assets (Operating ROA) has ranged from negative percentages, indicating inefficiency in generating operating profits from its assets, to a significant positive figure of 12.45% in 2022. This suggests that the company has improved its operational efficiency and performance during that year.
2. Return on assets (ROA) has shown a similar trend, with values varying between 2.65% and 15.66%. The highest ROA in 2022 indicates that Civitas Resources Inc was able to generate substantial profits relative to its total assets during that period.
3. Return on total capital has exhibited significant variability, ranging from 4.31% to 29.23%. The sharp increase in 2022 suggests that the company effectively utilized its total capital to generate profits.
4. Return on equity (ROE) has fluctuated between 3.84% and 23.22%, indicating varying returns to the shareholders' equity investment. The peak in 2022 shows that Civitas Resources Inc delivered strong returns to its equity holders during that year.
Overall, while the company's profitability ratios have shown fluctuations, there are clear instances of improved performance in certain years, particularly in 2022, where operational efficiency and profit generation were notably strong.