Civitas Resources Inc (CIVI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,628,750	6,668,480	6,586,020	6,634,930	6,181,320	6,020,630	5,046,690	5,101,750	5,373,920	5,253,520	4,992,550	4,637,530	4,655,000	1,417,250	1,385,110	1,046,760	1,045,250	982,952	978,038	1,016,420
ROE		12.65%	14.85%	12.67%	11.42%	12.69%	12.68%	20.40%	26.64%	23.23%	21.51%	15.32%	5.84%	3.84%	5.35%	2.78%	2.37%	9.90%	8.08%	11.46%	18.89%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $838,732K ÷ $6,628,750K
= 12.65%

Analyzing Civitas Resources Inc's Return on Equity (ROE) over the provided time period, we observe fluctuations in the metric. The ROE stood at a relatively high level of 18.89% as of March 31, 2020, reflecting strong profitability relative to shareholders' equity. However, the ROE declined to 11.46% by June 30, 2020, indicating a decrease in efficiency in generating profit from equity.

Over the subsequent quarters, the ROE continued to decline, hitting a low of 2.37% by March 31, 2021. This downward trend suggests potential challenges in effectively utilizing equity to generate returns during this period. However, there was a noticeable improvement in the ROE from June 30, 2021 to September 30, 2022, with the metric gradually increasing to 21.51%. This uptrend indicates enhanced profitability relative to equity levels.

In the latter part of the data series, the ROE experienced fluctuations around the 12-15% range, with a slight increase to 14.85% by September 30, 2024. This suggests that Civitas Resources Inc maintained a moderate level of profitability from shareholders' equity during this period. Notably, the ROE stood at 12.65% as of December 31, 2024, indicating a stable but not significantly high return on equity.

Overall, the analysis of Civitas Resources Inc's ROE reveals variability in the company's ability to generate returns from equity over the specified period. The management may need to focus on strategies to maintain or improve ROE levels to ensure efficient utilization of shareholders' funds and sustainable profitability in the long term.