Civitas Resources Inc (CIVI)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	784,288	1,248,080	178,921	103,528	67,067
Total assets	US$ in thousands	14,097,300	7,971,400	6,741,030	1,182,810	1,206,320
ROA		5.56%	15.66%	2.65%	8.75%	5.56%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $784,288K ÷ $14,097,300K
= 5.56%

The return on assets (ROA) for Civitas Resources Inc has fluctuated over the past five years, with values of 5.56%, 15.66%, 2.65%, 8.75%, and 5.56% for the years ending December 31, 2019 to 2023 respectively.

In 2022, Civitas Resources Inc achieved a notably high ROA of 15.66%, indicating effective utilization of its assets to generate profits. However, the ROA decreased substantially to 2.65% in 2021, suggesting potential challenges in asset efficiency and profitability.

The following year, in 2022, the ROA improved to 8.75%, indicating a recovery in asset performance. Subsequently, in the most recent year ending December 31, 2023, the ROA decreased to 5.56%.

Overall, the fluctuating trend in ROA suggests variations in the company's ability to generate earnings relative to its total assets. Further analysis of the company's financial health and operational efficiency may be required to understand the factors impacting these fluctuations.