Vital Energy Inc. (VTLE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.86% | 59.89% | 70.95% | 60.02% | -83.20% |
| Operating profit margin | -1.29% | 37.53% | 70.89% | 86.88% | -130.33% |
| Pretax margin | -12.62% | 34.32% | 42.60% | 18.11% | -132.78% |
| Net profit margin | -9.89% | 46.61% | 42.23% | 17.67% | -132.18% |
The profitability ratios of Vital Energy Inc. have shown significant fluctuations over the past five years. The Gross Profit Margin increased from a negative value of -83.20% in 2020 to 70.95% in 2022 before slightly decreasing to 22.86% in 2024. This indicates that the company's ability to generate profit from its core operations improved substantially but has since declined.
Similarly, the Operating Profit Margin displayed a dramatic improvement from -130.33% in 2020 to 86.88% in 2021 before stabilizing around 70.89% in 2022 and 37.53% in 2023. However, it turned negative at -1.29% in 2024, suggesting that the company may be facing challenges in controlling its operating expenses and generating profit from its operations.
The Pretax Margin also exhibited volatility, swinging from -132.78% in 2020 to 42.60% in 2022 before dropping to -12.62% in 2024. This indicates fluctuations in the company's ability to generate profit before accounting for taxes, reflecting potential inconsistencies in its operational efficiency or cost management.
Lastly, the Net Profit Margin, which represents the company's profitability after all expenses have been deducted, improved significantly from a negative value of -132.18% in 2020 to 46.61% in 2023. However, it decreased to -9.89% in 2024, indicating that the company's bottom-line profitability has deteriorated.
Overall, the profitability ratios of Vital Energy Inc. highlight a mixed performance over the years, with fluctuations in margins suggesting varying levels of operational efficiency, cost management, and overall profitability. Further analysis of the company's financial health and strategic initiatives may be required to better understand the underlying factors driving these fluctuations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.38% | 10.87% | 38.89% | 27.94% | -59.75% |
| Return on assets (ROA) | -2.95% | 13.50% | 23.17% | 5.68% | -60.60% |
| Return on total capital | -0.84% | 15.05% | 34.27% | 13.51% | -66.77% |
| Return on equity (ROE) | -6.43% | 24.96% | 56.85% | 28.22% | — |
Based on the provided data for Vital Energy Inc., the profitability ratios exhibit a fluctuating trend over the years.
1. Operating Return on Assets (Operating ROA): There seems to be a significant improvement in Vital Energy's operating efficiency as evidenced by a negative -59.75% Operating ROA in 2020 turning into a positive 38.89% in 2022. However, there's a slight decrease in 2024 to -0.38%.
2. Return on Assets (ROA): The Return on Assets ratio also shows variability in performance. After a negative -60.60% in 2020, there is an improvement in 2022 reaching 23.17%, but it declines again to -2.95% in 2024.
3. Return on Total Capital: The Return on Total Capital ratio follows a similar pattern, improving from -66.77% in 2020 to 34.27% in 2022, but regressing to -0.84% in 2024.
4. Return on Equity (ROE): Unfortunately, the data for ROE in 2020 seems to be missing (denoted by "\u2014"), but from 2021 to 2023, ROE shows positive performance with growth from 28.22% in 2021 to 56.85% in 2022, and then a slight decrease to 24.96% in 2023. However, in 2024, the ROE turns negative at -6.43%.
In conclusion, Vital Energy Inc. has shown periods of improvement in profitability metrics, especially between 2020 and 2022. However, there are signs of a slight decline in profitability in 2024, which may warrant further investigation into the company's operational and financial performance during that period.