Civitas Resources Inc (CIVI)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,182,194	1,096,216	1,399,987	1,836,985	1,686,052	1,537,436	1,047,120	385,241	261,431	22,031	-29,019	-35,042	44,377	85,918	111,836	196,081	157,224	162,126	171,937	166,207
Long-term debt	US$ in thousands	4,785,730	3,699,890	3,048,510	393,693	393,293	392,897	392,508	492,123	491,710	160,000	199,000	0	0	20,000	58,000	59,000	80,000	—	—	65,000
Total stockholders’ equity	US$ in thousands	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	936,690	937,924	900,006	858,147
Return on total capital		10.78%	11.28%	17.29%	33.43%	29.24%	27.23%	19.44%	7.51%	5.08%	1.40%	-1.83%	-3.35%	4.25%	8.57%	10.79%	18.23%	15.46%	17.29%	19.10%	18.00%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,182,194K ÷ ($4,785,730K + $6,181,320K)
= 10.78%

Civitas Resources Inc's return on total capital has shown fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 11.16%, lower than the previous quarter at 12.52%. This decrease follows a pattern of declining returns compared to earlier periods.

Looking further back, in Q2 and Q3 of 2023, the return on total capital was relatively high at 16.54% and 33.26%, respectively. The highest return was seen in Q4 2022 at 35.14%, which was part of a trend of consistently strong returns during that period.

Comparing the latest data to Q1 2022, where the return on total capital was at 16.31%, there has been a notable increase in performance. However, it's important to note the overall trend of declining returns since the peak in Q4 2022. This could indicate potential shifts in the company's capital management or profitability levels that may warrant further investigation.