Civitas Resources Inc (CIVI)

Return on assets (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
Net income (ttm)	US$ in thousands	838,732	990,490	834,350	757,648	784,277	763,314	1,029,432	1,358,966	1,248,155	1,129,950	764,815	270,675	178,917	75,856	38,441	24,858	103,528	79,403	112,056	191,980
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
ROA		5.61%	6.60%	5.55%	5.02%	5.56%	5.94%	10.12%	17.71%	15.66%	14.70%	10.32%	3.85%	2.65%	3.92%	2.01%	2.06%	8.75%	6.91%	9.41%	15.19%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $838,732K ÷ $14,944,100K
= 5.61%

Civitas Resources Inc's return on assets (ROA) has fluctuated over the reported periods. The ROA was 15.19% as of March 31, 2020, indicating that the company generated $0.1519 in net income for every $1 of assets during that period. Subsequently, the ROA declined to 2.06% by March 31, 2021, reflecting a drastic reduction in profitability relative to its asset base.

There was a slight improvement in ROA to 10.32% by June 30, 2022, and a further increase to 17.71% by March 31, 2023, suggesting the company efficiently managed its assets to generate higher returns. However, the ROA decreased to 5.02% by March 31, 2024, and fluctuated around the 5-6% range in the subsequent quarters. This indicates a decline in the company's profitability relative to its asset utilization in the latter part of the reporting period.

Overall, Civitas Resources Inc's ROA has shown variability, with periods of both strong performance and decline in asset efficiency. Further analysis of the company's operational and financial strategies may be needed to understand the factors contributing to these fluctuations in return on assets.