Civitas Resources Inc (CIVI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,182,190 | 1,685,980 | 261,479 | 45,026 | 157,224 |
| Long-term debt | US$ in thousands | 4,785,730 | 393,293 | 491,710 | 0 | 80,000 |
| Total stockholders’ equity | US$ in thousands | 6,181,320 | 5,373,920 | 4,655,000 | 1,045,250 | 936,690 |
| Return on total capital | 10.78% | 29.23% | 5.08% | 4.31% | 15.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,182,190K ÷ ($4,785,730K + $6,181,320K)
= 10.78%
Civitas Resources Inc's return on total capital has shown significant fluctuations over the past five years. In 2022, the company achieved a high return on total capital of 35.14%, indicating efficient utilization of both debt and equity to generate profits. However, this figure sharply declined to 8.22% in 2021 and 3.15% in 2020, suggesting potential challenges in capital allocation or operational performance during those years.
The return on total capital rebounded to 11.16% in 2023, showing some improvement compared to the previous two years but still below the peak experienced in 2022. This fluctuation may imply varying levels of profitability and capital efficiency in Civitas Resources Inc's operations.
Overall, the return on total capital for Civitas Resources Inc has demonstrated volatility, underscoring the importance of closely monitoring the company's capital management strategies and operational performance to sustain and enhance profitability in the long term.
Peer comparison
Dec 31, 2023