Vital Energy Inc. (VTLE)

Working capital 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
Total current assets	US$ in thousands	466,556	419,262	312,526	745,897	370,919	814,208	242,929	229,666	245,791	248,061	373,963	302,352	235,857	194,547	302,817	138,089	136,590	199,513	256,259	427,296
Total current liabilities	US$ in thousands	601,139	626,332	617,420	609,335	595,589	571,702	433,745	391,507	415,276	527,273	799,376	775,502	526,913	574,811	489,675	292,243	197,595	143,108	157,789	185,684
Working capital turnover		—	—	—	10.45	—	4.94	—	—	—	—	—	—	—	—	—	—	—	15.84	10.86	5.16

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,710,423K ÷ ($466,556K – $601,139K)
= —

The working capital turnover ratio is a measure of how efficiently a company utilizes its working capital to generate sales. In the case of Vital Energy Inc., the trend in the working capital turnover ratio over the period shows:

- As of March 31, 2020, the working capital turnover ratio was 5.16, indicating that the company generated $5.16 in sales for every dollar of working capital.

- By June 30, 2020, the ratio increased significantly to 10.86, reflecting an improvement in the efficiency of working capital management.

- The ratio further improved to 15.84 as of September 30, 2020, showing a continued efficient utilization of working capital.

- From March 31, 2023, to March 31, 2024, there was a decrease in the ratio, suggesting a potential slowdown in the efficiency of working capital turnover. However, the ratio remained relatively high at 10.45 as of March 31, 2024.

- It is worth noting that there are missing data points for the working capital turnover ratio in several quarters, which limits the ability to assess the overall trend accurately.

Overall, the working capital turnover ratio for Vital Energy Inc. fluctuated during the period under review, with some quarters showing strong efficiency in utilizing working capital to generate sales. Monitoring this ratio over time can provide insights into the company's financial health and efficiency in managing its working capital.