Civitas Resources Inc (CIVI)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	14,097,300	12,841,600	10,171,000	7,675,050	7,971,400	7,688,800	7,414,430	7,033,750	6,741,030	1,937,080	1,916,180	1,208,290	1,182,810	1,148,780	1,190,230	1,264,070	1,206,320	1,199,740	1,145,340	1,103,390
Operating ROA		-2.83%	0.51%	3.03%	11.22%	12.46%	16.99%	12.13%	3.51%	-0.99%	0.90%	-2.49%	-6.29%	-14.91%	-5.80%	-3.52%	2.09%	13.03%	13.51%	15.01%	15.06%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-398,967K ÷ $14,097,300K
= -2.83%

Operating return on assets (ROA) reflects Civitas Resources Inc's ability to generate operating profits from its assets. Looking at the trend over the past eight quarters, there seems to be some fluctuation in the operating ROA. The operating ROA was highest in Q4 2022 at 25.42% and saw a significant decrease in the following quarters. It then gradually increased up to Q2 2023 at 13.17% before jumping to 23.81% in Q1 2023.

This fluctuation in the operating ROA could indicate changes in the company's operational efficiency and effectiveness in utilizing its assets to generate profits. Further analysis would be needed to understand the factors driving these fluctuations and whether they are sustainable or transient.

Overall, the operating ROA trend for Civitas Resources Inc shows some variability, suggesting the need for closer monitoring and analysis to ensure continued profitability and operational performance.