Vital Energy Inc. (VTLE)

Net profit margin

		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
Net income (ttm)	US$ in thousands	-173,521	467,305	256,898	515,007	695,078	531,868	864,498	832,233	631,512	729,564	528,873	133,666	145,008	-237,200	-611,464	-1,024,258	-874,173	-949,962	-977,159	-258,322
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
Net profit margin		-10.14%	23.24%	16.20%	36.07%	46.61%	44.43%	58.78%	50.57%	42.24%	44.51%	38.96%	14.10%	17.18%	-42.20%	-148.99%	-218.22%	-101.24%	-106.32%	-91.39%	-20.71%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-173,521K ÷ $1,710,423K
= -10.14%

Net profit margin is a key profitability ratio that measures the percentage of revenue that translates into profit after all expenses have been accounted for. For Vital Energy Inc., the net profit margin showed a significant improvement over the period analyzed.

The company experienced negative net profit margins in the initial quarters, with percentages ranging from -20.71% to as low as -218.22%. These negative figures indicate that the company was incurring losses during these periods.

Starting from December 31, 2021, Vital Energy Inc. began to turn things around, achieving positive net profit margins. The trend of improvement continued throughout the following quarters, reaching its peak at 58.78% on June 30, 2023.

However, there was a slight decrease in the net profit margin in the subsequent quarters, with percentages ranging from 36.07% to -10.14% on December 31, 2024. This fluctuation may be attributed to various factors such as changes in expenses, revenue mix, or economic conditions.

Overall, the positive trend in Vital Energy Inc.'s net profit margin from 2021 to 2023 reflects the company's efforts to enhance operational efficiency and control costs, leading to improved profitability. Careful monitoring and analysis of future financial statements will be essential to ensure sustained profitability in the long term.