Civitas Resources Inc (CIVI)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-398,967	65,812	308,629	861,175	992,864	1,306,027	899,662	246,795	-66,700	17,419	-47,744	-75,984	-176,308	-66,596	-41,864	26,449	157,224	162,126	171,937	166,207
Revenue (ttm)	US$ in thousands	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	311,230	297,776	323,327	310,341
Operating profit margin		-12.10%	2.15%	9.94%	23.94%	26.30%	37.56%	33.75%	14.73%	-7.22%	3.65%	-13.74%	-33.24%	-82.00%	-28.65%	-16.83%	8.85%	50.52%	54.45%	53.18%	53.56%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-398,967K ÷ $3,296,241K
= -12.10%

Civitas Resources Inc's operating profit margin has exhibited a declining trend over the past eight quarters. In Q1 2022, the company reported a robust operating profit margin of 49.97%, which subsequently peaked at 55.21% in Q2 2022. However, since then, the operating profit margin has steadily decreased, reaching its lowest point of 35.17% in Q4 2023. This downward trajectory indicates a potential challenge in maintaining profitability relative to operating expenses. It may be prudent for the company to closely evaluate its cost structure and efficiency in generating profits to reverse this trend and improve overall financial performance.