Vital Energy Inc. (VTLE)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	893,103	1,061,030	492,587	-550,267	-116,736
Revenue	US$ in thousands	1,491,170	1,495,400	820,641	661,355	855,625
Gross profit margin		59.89%	70.95%	60.02%	-83.20%	-13.64%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $893,103K ÷ $1,491,170K
= 59.89%

The gross profit margin of Vital Energy Inc. has shown fluctuating trends over the past five years. In 2023, the gross profit margin stands at 59.89%, indicating a decrease from the previous year's value of 70.95%. Despite the decline, the margin remains relatively high compared to 2021 when it was 60.02%.

However, significant concerns arise when we look back to 2020 and 2019, where the company reported negative gross profit margins of -83.20% and -13.64%, respectively. Negative gross profit margins are an alarming sign as they suggest that the cost of goods sold exceeded the total revenue generated by the company.

The wide fluctuations in Vital Energy Inc.'s gross profit margin raise questions about the company's pricing strategies, production costs, and overall profitability. A deeper analysis of the factors contributing to these fluctuations is warranted to understand the underlying reasons for such volatility in the company's gross profit margins.