Civitas Resources Inc (CIVI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,181,320	5,373,920	4,655,000	1,045,250	936,690
ROE		12.69%	23.22%	3.84%	9.90%	7.16%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $784,288K ÷ $6,181,320K
= 12.69%

Civitas Resources Inc's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE stood at 12.69%, showing a decrease compared to the previous year where it was at 23.22%. The 2023 ROE is higher compared to the ROE in 2020 and 2019, indicating an improvement in the company's profitability and efficiency in generating returns for shareholders.

It is noteworthy that the ROE in 2021 was relatively low at 3.84%, indicating potential challenges in utilizing equity effectively to generate profits during that period. However, there was a recovery in 2022 and 2023, suggesting that management may have implemented measures to enhance the company's performance.

Overall, while there have been fluctuations in Civitas Resources Inc's ROE over the past five years, the recent increase in 2023 compared to the previous years demonstrates a positive trend in the company's ability to generate profits relative to its shareholders' equity.