Civitas Resources Inc (CIVI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,539,000 | 1,182,190 | 1,685,980 | 261,479 | 45,026 |
| Long-term debt | US$ in thousands | 4,493,530 | 4,785,730 | 393,293 | 491,710 | 0 |
| Total stockholders’ equity | US$ in thousands | 6,628,750 | 6,181,320 | 5,373,920 | 4,655,000 | 1,045,250 |
| Return on total capital | 13.84% | 10.78% | 29.23% | 5.08% | 4.31% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,539,000K ÷ ($4,493,530K + $6,628,750K)
= 13.84%
Civitas Resources Inc's return on total capital has exhibited a notable increase from 4.31% as of December 31, 2020, to 5.08% as of December 31, 2021. The significant surge in the return on total capital to 29.23% as of December 31, 2022 indicates a substantial improvement in the company's efficiency in utilizing its capital to generate profits. However, this exceptionally high return in 2022 was followed by a moderation to 10.78% as of December 31, 2023, and a further decrease to 13.84% as of December 31, 2024. While the return rates have fluctuated over the years, the company maintained a generally positive trend in generating returns on its total capital, reflecting varying degrees of capital efficiency and profitability.
Peer comparison
Dec 31, 2024