Vital Energy Inc. (VTLE)
Total 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 |
| Total assets | US$ in thousands | 5,878,950 | 5,149,580 | 2,726,110 | 2,551,820 | 1,442,610 |
| Total asset turnover | 0.30 | 0.29 | 0.55 | 0.32 | 0.46 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,753,840K ÷ $5,878,950K
= 0.30
Total asset turnover measures Vital Energy Inc.'s efficiency in generating sales revenue from its total assets. A higher ratio indicates better asset utilization.
In December 31, 2020, the total asset turnover was 0.46, suggesting that for every dollar of assets, Vital Energy generated 46 cents in sales revenue.
However, there was a decrease in efficiency by December 31, 2021, with the ratio falling to 0.32, indicating a decline in the company's ability to utilize its assets to generate revenue.
The ratio improved in December 31, 2022, reaching 0.55, signaling better asset efficiency and indicating that Vital Energy increased its sales relative to its total assets.
By December 31, 2023, the total asset turnover dropped to 0.29, showing a decrease in asset utilization efficiency compared to the previous year.
In the most recent period ending December 31, 2024, the total asset turnover remained relatively stable at 0.30, suggesting that Vital Energy maintained a similar level of asset efficiency in generating sales revenue.
Overall, the company's total asset turnover has fluctuated over the years, indicating varying levels of efficiency in utilizing assets to generate revenue. Companies can use this ratio to assess their operational performance and efficiency in generating sales relative to their asset base.
Peer comparison
Dec 31, 2024