Vital Energy Inc. (VTLE)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-173,521	695,078	631,512	145,008	-874,173
Revenue	US$ in thousands	1,753,840	1,491,170	1,495,400	820,641	661,355
Net profit margin		-9.89%	46.61%	42.23%	17.67%	-132.18%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-173,521K ÷ $1,753,840K
= -9.89%

Based on the provided data, the net profit margin of Vital Energy Inc. has shown significant fluctuations over the past five years.

In December 31, 2020, the net profit margin was -132.18%, indicating that the company incurred a net loss exceeding its total revenue. This suggests that the company faced challenges in managing its expenses and generating profits during that period.

By December 31, 2021, the net profit margin improved to 17.67%, reflecting a positive turnaround in the company's profitability. This increase indicates that Vital Energy Inc. was able to control its costs more effectively and generate higher profits relative to its revenue.

Subsequently, in December 31, 2022, the net profit margin further increased to 42.23%, demonstrating continued improvement in the company's financial performance. This significant growth in profitability suggests that Vital Energy Inc. implemented successful strategies to enhance its operational efficiency and profitability.

By December 31, 2023, the net profit margin reached a higher level of 46.61%, showing a strong performance in terms of generating profits relative to its revenue. This indicates that the company experienced robust growth and effectively managed its costs while increasing its revenue streams.

However, the net profit margin decreased to -9.89% by December 31, 2024, signifying a decline in profitability compared to the previous year. This decrease may raise concerns about the company's ability to maintain consistent profitability and manage its expenses effectively.

Overall, Vital Energy Inc. has demonstrated fluctuations in its net profit margin over the past five years, experiencing both challenges and successes in managing its profitability. It is essential for the company to focus on maintaining sustainable growth and implementing effective cost-control measures to ensure long-term financial stability.