Vital Energy Inc. (VTLE)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	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	927,670	924,835	880,272	880,711
Property, plant and equipment	US$ in thousands	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	—	2,000,220	1,977,270	2,369,730	2,300,640
Fixed asset turnover		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	—	0.46	0.47	0.37	0.38

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,491,174K ÷ $4,360,210K
= 0.34

Fixed asset turnover measures how effectively a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.

Looking at the trend in Vital Energy Inc.'s fixed asset turnover over the past few quarters, we observe fluctuations in the ratio. From March 2020 to June 2022, the ratio remained relatively stable, fluctuating between 0.56 and 0.70. However, there was a significant increase in the ratio from March 2023 onwards, reaching 0.66 in March 2023 and further peaking at 0.66 in September 2023.

This increase in the fixed asset turnover ratio suggests that Vital Energy Inc. improved its efficiency in generating sales from its fixed assets during the latter part of 2023. It indicates that the company may have increased its revenue generation without proportionally increasing its investment in fixed assets.

However, it is important to note the missing data point for March 2020, which limits a complete historical analysis. Further analysis and comparison with industry peers and benchmarks would provide a more comprehensive understanding of Vital Energy Inc.'s fixed asset turnover performance.