Civitas Resources Inc (CIVI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,944,100 | 15,007,800 | 15,041,300 | 15,084,000 | 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 |
| Operating ROA | -6.04% | -0.64% | -0.99% | -2.40% | -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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-903,182K ÷ $14,944,100K
= -6.04%
Operating return on assets (ROA) is a key financial metric that measures a company's efficiency in generating operating profits relative to its total assets. A positive operating ROA indicates that a company is effectively utilizing its assets to generate profits, while a negative operating ROA suggests that the company may not be efficiently using its assets to generate profits.
Analyzing Civitas Resources Inc's operating ROA over the period from March 31, 2020, to December 31, 2024, we observe fluctuations in the metric, indicating changes in the company's operating efficiency and asset utilization.
The trend in Civitas Resources Inc's operating ROA shows variability over the period, with significant fluctuations between positive and negative values. Initially, the company's operating ROA was positive at 2.09% as of March 31, 2020, indicating efficient asset utilization. However, the metric turned negative in the subsequent periods, reaching its lowest point at -14.91% by December 31, 2020.
From March 31, 2021, to June 30, 2022, the company's operating ROA remained negative, albeit with some fluctuations, suggesting continued challenges in efficiently generating operating profits from its assets. However, starting from September 30, 2022, Civitas Resources Inc's operating ROA began to improve, showing a positive trend.
The company's operating ROA improved significantly in the later periods, reaching a peak of 16.99% by September 30, 2022. This improvement continued until March 31, 2023, before experiencing a slight decline. Despite some fluctuations, Civitas Resources Inc managed to maintain positive operating ROA values until December 31, 2023, when the metric dipped back into negative territory at -2.83%.
In conclusion, Civitas Resources Inc's operating ROA demonstrates fluctuations over the period under review, reflecting varying levels of operating efficiency and asset utilization. The company experienced challenges in the mid-years but showed improvement in later periods, indicating a potential reinvigoration of its operational performance. Continued monitoring of operating ROA will be crucial to assess the company's ongoing operational effectiveness and asset management.
Peer comparison
Dec 31, 2024