Vital Energy Inc. (VTLE)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	893,103	750,845	1,030,769	1,207,425	1,059,791	1,576,937	1,243,090	781,888	651,915	369,756	41,085	-433,960	-88,600	-58,543	-44,300	715,671	470,930	468,095	812,842	807,909
Revenue (ttm)	US$ in thousands	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	927,670	924,835	880,272	880,711
Gross profit margin		59.89%	62.72%	70.09%	73.36%	70.88%	96.20%	91.58%	82.45%	77.22%	65.78%	10.01%	-92.46%	-10.26%	-6.55%	-4.14%	57.37%	50.76%	50.61%	92.34%	91.73%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $893,103K ÷ $1,491,174K
= 59.89%

The gross profit margin of Vital Energy Inc. has shown fluctuations over the past several quarters. In the most recent quarter, ending December 31, 2023, the gross profit margin was 59.89%, indicating a decrease compared to the previous quarter.

The trend over the past few quarters reveals that the company experienced a peak gross profit margin of 96.20% in the quarter ending September 30, 2022, followed by a significant decline in the quarter ending December 31, 2022, where it dropped to 70.88%. Subsequently, there was a recovery in the margins, reaching a high of 73.36% in the quarter ending March 31, 2023.

It is essential to investigate the causes behind the fluctuations in the gross profit margin, as they can be influenced by various factors such as changes in sales revenue, cost of goods sold, pricing strategies, and operational efficiency. Management should focus on maintaining a stable and healthy gross profit margin to ensure sustainable profitability and operational effectiveness.