Vital Energy Inc. (VTLE)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,753,840	1,491,170	1,495,400	820,641	661,355
Property, plant and equipment	US$ in thousands	4,997,900	4,360,210	2,410,540	2,250,150	1,271,710
Fixed asset turnover		0.35	0.34	0.62	0.36	0.52

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,753,840K ÷ $4,997,900K
= 0.35

Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate sales. Vital Energy Inc.'s fixed asset turnover has fluctuated over the past five years, ranging from 0.34 to 0.62.

In December 31, 2020, the company had a fixed asset turnover of 0.52, indicating that it generated $0.52 in sales for every dollar of fixed assets. This ratio decreased to 0.36 by December 31, 2021, suggesting a decline in efficiency in utilizing fixed assets to generate revenue.

However, the company saw an improvement in December 31, 2022, with a fixed asset turnover of 0.62, indicating a more efficient use of fixed assets to generate sales. Unfortunately, this improvement was not sustained as the ratio decreased to 0.34 by December 31, 2023, falling below the previous years' levels.

By December 31, 2024, the fixed asset turnover slightly increased to 0.35, showing a minor improvement in utilizing fixed assets to drive sales. Overall, these fluctuations in Vital Energy Inc.'s fixed asset turnover suggest varying levels of efficiency in managing and utilizing its fixed assets to generate revenue over the past five years.