Civitas Resources Inc (CIVI)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-804,854	-407,247	992,181	-67,761	-176,807
Revenue	US$ in thousands	5,204,240	3,296,250	3,775,140	923,213	215,005
Operating profit margin		-15.47%	-12.35%	26.28%	-7.34%	-82.23%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-804,854K ÷ $5,204,240K
= -15.47%

The operating profit margin is a key financial ratio that indicates a company's efficiency in generating profits from its core operations. It is calculated by dividing operating income by total revenue and is expressed as a percentage.

Analyzing Civitas Resources Inc's operating profit margin from 2020 to 2024 reveals significant fluctuations. In December 2020, the company reported an operating profit margin of -82.23%, indicating that its operating expenses exceeded its operating income by a substantial margin. This suggests that the company was experiencing challenges in controlling costs and generating profits from its operations.

By December 2021, there was a notable improvement in Civitas Resources Inc's operating profit margin, which stood at -7.34%. While still negative, this indicates that the company was able to reduce its operating losses compared to the previous year.

The trend continued to improve in December 2022, with Civitas Resources Inc achieving a positive operating profit margin of 26.28%. This indicates that the company was able to generate profits from its core operations and effectively manage its costs.

However, in December 2023 and 2024, the operating profit margins declined to -12.35% and -15.47%, respectively. These negative margins suggest that Civitas Resources Inc faced challenges in maintaining profitability from its operations, possibly due to increasing operating expenses or a decline in revenue.

In conclusion, while there have been fluctuations in Civitas Resources Inc's operating profit margin over the years, it is crucial for the company to focus on improving operational efficiency, controlling costs, and maximizing revenue to ensure sustainable profitability in the long term.