Civitas Resources Inc (CIVI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 838,723 | 784,288 | 1,248,080 | 178,921 | 103,528 |
| Total assets | US$ in thousands | 14,944,100 | 14,097,300 | 7,971,400 | 6,741,030 | 1,182,810 |
| ROA | 5.61% | 5.56% | 15.66% | 2.65% | 8.75% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $838,723K ÷ $14,944,100K
= 5.61%
Civitas Resources Inc's return on assets (ROA) has shown fluctuations over the past five years. In December 2020, the ROA was at 8.75%, indicating that the company generated a profit of 8.75 cents for every dollar of assets it possessed. However, by December 2021, the ROA decreased to 2.65%, suggesting a decline in the company's efficiency in utilizing its assets to generate profits.
The trend reversed in December 2022 when Civitas Resources Inc's ROA jumped to 15.66%, signaling a significant improvement in how effectively the company was utilizing its assets to generate returns. This surge in ROA may indicate a strategic shift or operational changes within the company that led to more efficient asset utilization.
By December 2023, the ROA decreased to 5.56%, which, although lower than the previous year, still demonstrates a decent return on assets. Finally, in December 2024, the ROA slightly increased to 5.61%, indicating a marginal improvement in the company's asset efficiency compared to the previous year.
Overall, Civitas Resources Inc's ROA trend highlights fluctuations in the company's ability to generate profits from its assets effectively. It is essential for the company to consistently monitor and improve its asset management strategies to ensure sustained profitability and operational efficiency in the long term.
Peer comparison
Dec 31, 2024