Civitas Resources Inc (CIVI)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	14,944,100	14,097,300	7,971,400	6,741,030	1,182,810
Operating ROA		-5.39%	-2.89%	12.45%	-1.01%	-14.95%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-804,854K ÷ $14,944,100K
= -5.39%

Civitas Resources Inc's operating return on assets (operating ROA) has exhibited significant fluctuations over the past five years. As of December 31, 2020, the company reported a negative operating ROA of -14.95%, indicating that its operating income generated from assets was insufficient or negative.

However, there was a notable improvement by December 31, 2022, with the operating ROA increasing to 12.45%, signifying a strong performance in utilizing assets to generate operating income. This surge may indicate improved operational efficiency or successful strategic initiatives.

Subsequently, by December 31, 2023, the operating ROA dropped to -2.89%, possibly reflecting operational challenges or decreased profitability relative to asset base. The downward trend continued as of December 31, 2024, with a further decrease in operating ROA to -5.39%, suggesting ongoing difficulties in generating operating income from assets.

Overall, the fluctuating trend in Civitas Resources Inc's operating ROA highlights the company's varying ability to effectively utilize its assets to generate operating income over the five-year period. It is essential for the company to closely monitor and address the factors impacting its operating ROA to ensure sustainable and improved financial performance.