Vital Energy Inc. (VTLE)

Short-term

Turnover ratios

1. Inventory Turnover Ratio:
- Vital Energy Inc.'s inventory turnover ratio has shown significant fluctuations over the years, ranging from as low as 3.86 to as high as 328.21.
- The company's ability to turn over its inventory improved in some periods, such as September 2022 and March 2023, but deteriorated in others, like December 2022 and December 2023.
- Overall, the inventory turnover ratio indicates that the company is managing its inventory efficiently, although there have been periods of inefficiency and fluctuation.

2. Receivables Turnover Ratio:
- The receivables turnover ratio of Vital Energy Inc. has also varied notably, with values ranging from 4.37 to 16.50.
- The trend shows a general decline in the receivables turnover ratio over the years, indicating that the company may be taking longer to collect outstanding payments from customers.
- The low values in recent periods, such as December 2023 and March 2024, highlight potential issues with the company's accounts receivable management.

3. Payables Turnover Ratio:
- The data provided does not include information on payables turnover for Vital Energy Inc., suggesting that this ratio is not available for analysis.
- Without this ratio, it is difficult to assess the company's efficiency in paying its suppliers and managing its accounts payable turnover.

4. Working Capital Turnover Ratio:
- The working capital turnover ratio for Vital Energy Inc. has shown variability, with values fluctuating between 4.94 and 15.84.
- The absence of data for certain periods makes it challenging to provide a comprehensive analysis of the company's efficiency in utilizing its working capital to generate sales.
- However, the available data indicates that Vital Energy Inc. has had periods of effective utilization of working capital to drive revenue generation.

In conclusion, Vital Energy Inc.'s activity ratios suggest varying levels of efficiency in managing inventory, receivables, and working capital turnover over the analyzed periods. Monitoring and improving these ratios can help the company enhance its operational performance and financial health.

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Average number of days

Based on the provided data, let's analyze Vital Energy Inc.'s activity ratios:

1. Days of Inventory on Hand (DOH):
- Vital Energy Inc.'s DOH decreased from 94.51 days as of March 31, 2020, to 4.66 days as of December 31, 2024. This indicates that the company has been managing its inventory more efficiently over this period, reducing the number of days it takes to sell its inventory.
- However, there are fluctuations in the DOH, with some periods showing significant increases or decreases, which may suggest changes in production or sales strategies during those times.

2. Days of Sales Outstanding (DSO):
- The DSO for Vital Energy Inc. fluctuated over the years, ranging from 22.12 days as of March 31, 2020, to 83.58 days as of December 31, 2024. This indicates the average number of days it takes for the company to collect revenue from sales.
- The company experienced both improvement and deterioration in its DSO over different periods, which could be due to changes in credit policies, customer payment habits, or economic conditions.

3. Number of Days of Payables:
- The data provided does not include information on the number of days of payables for Vital Energy Inc. This ratio is essential for understanding how long the company takes to pay its suppliers, which impacts its relationships with them and cash flow management.
- Lack of information on payables days makes it challenging to evaluate the company's overall working capital efficiency and how it manages its payables.

In conclusion, Vital Energy Inc. has shown improvements in inventory management over time, while the efficiency of revenue collection has varied. However, the absence of payable days data limits a comprehensive analysis of the company's complete working capital cycle.

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Long-term

Vital Energy Inc.'s fixed asset turnover ratio measures the company's ability to generate sales from its fixed assets. The ratio has fluctuated over the years, ranging from a low of 0.30 in June 2021 to a high of 0.66 in March 2023 and September 2022. Generally, a higher fixed asset turnover indicates better efficiency in utilizing fixed assets to generate revenue.

On the other hand, the total asset turnover ratio reflects Vital Energy Inc.'s ability to generate sales from all its assets. The trend shows a decrease in the ratio from 2.35 in March 2020 to 0.29 in December 2024. A declining total asset turnover may suggest that the company is becoming less efficient in generating revenue relative to its total assets.

Overall, Vital Energy Inc. should focus on improving its fixed asset turnover to maximize the utilization of its fixed assets efficiently. Additionally, efforts may be required to enhance the total asset turnover ratio to optimize the company's overall asset utilization and generate more revenue per dollar of total assets.