Civitas Resources Inc (CIVI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 999,454 | 1,653,780 | 251,779 | 42,981 | 67,067 |
| Revenue | US$ in thousands | 3,296,250 | 3,775,140 | 923,213 | 215,005 | 312,095 |
| Pretax margin | 30.32% | 43.81% | 27.27% | 19.99% | 21.49% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $999,454K ÷ $3,296,250K
= 30.32%
Civitas Resources Inc's pretax margin has fluctuated over the past five years, ranging from 19.71% in 2020 to a peak of 43.62% in 2022. The pretax margin for the most recent year, 2023, stands at 28.73%. This indicates that in 2023, the company retained approximately 28.73% of its total revenue as pre-tax profit after accounting for operating expenses.
The downward trend from 2022 to 2023 suggests a decrease in the company's profitability efficiency, possibly due to higher operating expenses relative to revenue in the latest year. However, it is important to note that the pretax margin for 2023 is still higher than the margins recorded in 2020 and 2019, indicating a positive performance compared to those years.
Overall, while the recent decrease in pretax margin may raise some concerns, it is essential for Civitas Resources Inc to continue monitoring and managing its cost structure and revenue generation to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023