Vital Energy Inc. (VTLE)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,491,170	1,495,400	820,641	661,355	855,625
Total assets	US$ in thousands	5,149,580	2,726,110	2,551,820	1,442,610	2,264,440
Total asset turnover		0.29	0.55	0.32	0.46	0.38

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,491,170K ÷ $5,149,580K
= 0.29

Vital Energy Inc.'s total asset turnover has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher ratio is generally preferred as it indicates that the company is generating more revenue per dollar of assets.

In 2023, the total asset turnover decreased to 0.29 from 0.55 in 2022, reflecting a significant decline in the efficiency of asset utilization. This suggests that the company may not be effectively generating revenue relative to its asset base in the most recent year.

Comparing the ratio to previous years, the highest total asset turnover was observed in 2022 at 0.55, indicating a strong performance in asset utilization. However, in 2021 and 2020, the ratio dropped to 0.32 and 0.46, respectively, showing fluctuations in the company's efficiency in generating revenue from its assets over these years.

Overall, Vital Energy Inc. should focus on improving its total asset turnover to enhance efficiency and productivity in utilizing its assets to generate revenue in the upcoming years.