Civitas Resources Inc (CIVI)

Return on assets (ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	106,436	111,338	118,808	82,645
Total assets	US$ in thousands	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	1,206,320	1,199,740	1,145,340	1,103,390
ROA		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%	8.82%	9.28%	10.37%	7.49%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $784,277K ÷ $14,097,300K
= 5.56%

Civitas Resources Inc's return on assets (ROA) has exhibited fluctuations over the past eight quarters. In Q1 2022, the ROA was at 3.85%, which then increased steadily in subsequent quarters to reach a peak of 17.71% in Q1 2023. However, in Q2 2023, there was a sharp decline in ROA to 10.12%, followed by a further decrease to 5.94% in Q3 2023, and a slight drop to 5.56% in Q4 2023.

The fluctuation in ROA indicates varying levels of profitability generated from the company's assets over the quarters under consideration. The significant increase in ROA from Q1 2022 to Q1 2023 suggests that the company effectively utilized its assets to generate profits during that period. However, the subsequent decline in ROA from Q1 2023 to Q4 2023 may raise concerns about the company's efficiency in utilizing its assets to generate returns.

Further analysis of the factors influencing ROA, such as changes in revenue, expenses, and asset base, would provide a deeper understanding of Civitas Resources Inc's financial performance and efficiency in asset utilization.