Vital Energy Inc. (VTLE)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,710,423 2,010,826 1,585,927 1,427,688 1,491,174 1,197,050 1,470,610 1,645,783 1,495,182 1,639,176 1,357,310 948,273 844,278 562,119 410,399 469,362 863,451 893,508 1,069,249 1,247,510
Property, plant and equipment US$ in thousands 4,997,900 5,451,470 4,547,720 4,496,460 4,360,210 3,224,380 3,176,010 2,512,230 2,410,540 2,475,910 2,407,570 2,347,620 2,250,150 1,967,090 1,368,050 1,303,370 1,271,710 1,335,150 1,536,260 —
Fixed asset turnover 0.34 0.37 0.35 0.32 0.34 0.37 0.46 0.66 0.62 0.66 0.56 0.40 0.38 0.29 0.30 0.36 0.68 0.67 0.70 —

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,710,423K ÷ $4,997,900K
= 0.34

Vital Energy Inc.'s fixed asset turnover has shown fluctuations over the period covered in the data. The ratio was inconsistent, starting at 0.70 on June 30, 2020 and then declining to 0.30 on June 30, 2021, before gradually increasing to a peak of 0.66 on March 31, 2023. However, the ratio decreased again to 0.32 on March 31, 2024. This indicates that the company's ability to generate revenue from its fixed assets has been varied. It suggests that management may need to focus on optimizing the utilization of fixed assets to enhance operational efficiency and potentially improve profitability in the future.