Vital Energy Inc. (VTLE)

Operating 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
Operating income (ttm)	US$ in thousands	559,621	581,838	664,933	912,648	1,060,382	1,146,352	1,148,818	888,001	720,313	398,833	-34,559	-576,958	-861,733	-954,079	-1,136,840	-644,960	-408,591	-182,091	272,758	309,697
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
Operating profit margin		37.53%	48.61%	45.21%	55.45%	70.92%	69.93%	84.64%	93.64%	85.32%	70.95%	-8.42%	-122.92%	-99.80%	-106.78%	-106.32%	-51.70%	-44.04%	-19.69%	30.99%	35.16%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $559,621K ÷ $1,491,174K
= 37.53%

The operating profit margin of Vital Energy Inc. has shown variability over the past few quarters. In the most recent quarter, ending December 31, 2023, the operating profit margin was 37.53%, indicating that the company generated 37.53 cents of operating profit for every dollar of sales.

Compared to the previous quarter, the operating profit margin decreased from 48.61% in September 2023 to 37.53% in December 2023. This decline may suggest a decrease in operating efficiency or an increase in operating expenses relative to sales during this period.

Historically, the company has experienced fluctuating operating profit margins, with some quarters showing notably high margins (e.g., 93.64% in March 2022) and others showing negative margins (e.g., -122.92% in June 2021). Negative operating profit margins indicate that the company's operating expenses exceeded its operating income, potentially due to factors such as cost overruns or decreased sales revenue.

Overall, Vital Energy Inc. should closely monitor its operating profit margin to ensure sustainable profitability and operational effectiveness. Efforts to control costs, improve operational efficiency, and enhance revenue generation may help in maintaining a healthy operating profit margin over time.