Civitas Resources Inc (CIVI)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	-903,182	-96,561	-148,175	-362,015	-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
Revenue (ttm)	US$ in thousands	5,094,450	4,839,420	4,526,829	3,865,899	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
Operating profit margin		-17.73%	-2.00%	-3.27%	-9.36%	-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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-903,182K ÷ $5,094,450K
= -17.73%

Civitas Resources Inc's operating profit margin has exhibited significant fluctuations over the past years. Starting from March 31, 2020, the company had an operating profit margin of 8.85%, indicating a decent level of profitability. However, this trend reversed sharply in the subsequent periods, with negative margins reported consistently until September 30, 2021. These negative margins suggest that the company's operating expenses were higher than its operating income during this time frame.

From September 30, 2021, there was a notable turnaround, as the operating profit margin improved to 3.65%. This positive momentum continued into the following quarters, with margins rising steadily to reach 37.56% by September 30, 2022. This significant improvement indicates better control over costs and increased efficiency in generating profits from operations.

Although there was a slight dip in the operating profit margin by the end of December 31, 2022, the company remained profitable at 26.30%. The first quarter of 2023 saw a slight decline to 23.94%, but the company managed to maintain profitability. However, the operating profit margin decreased further to -12.10% by the end of December 31, 2023, indicating a return to loss-making operations.

The negative trend continued into the first half of 2024, with operating profit margins hovering around negative values. By the end of June 30, 2024, the operating profit margin had improved slightly to -3.27% but remained negative. The trend continued in the subsequent quarters, showing a persistent struggle to achieve positive operating profitability, with the margin standing at -17.73% by December 31, 2024.

Overall, the analysis of Civitas Resources Inc's operating profit margin reveals a mix of profitability and periods of operational challenges. The company experienced a significant turnaround from negative margins to profitability in 2021 and 2022 but faced renewed struggles in 2023 and 2024. This indicates a need for a closer examination of cost management and revenue generation strategies to ensure sustained profitability in the future.