Vital Energy Inc. (VTLE)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-22,552	559,621	1,060,160	712,963	-861,970
Total assets	US$ in thousands	5,878,950	5,149,580	2,726,110	2,551,820	1,442,610
Operating ROA		-0.38%	10.87%	38.89%	27.94%	-59.75%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-22,552K ÷ $5,878,950K
= -0.38%

The operating return on assets (operating ROA) of Vital Energy Inc. has shown significant fluctuations over the past five years. At December 31, 2020, the operating ROA was negative, reflecting a percentage of -59.75%, which indicates that the company was not effectively generating profits from its assets during that period.

However, in the subsequent years, there was a notable improvement in the operating ROA. By December 31, 2021, the operating ROA had risen to 27.94%, signifying a positive turnaround in the company's ability to generate operating income from its assets. This positive trend continued in the following years, reaching a peak of 38.89% by December 31, 2022.

Despite the initial improvement, there was a slight decline in the operating ROA by December 31, 2023, falling to 10.87%. This may suggest potential challenges or changes in the company's operations impacting its profitability relative to its asset base.

The most recent data point, as of December 31, 2024, shows a negative operating ROA of -0.38%, signifying a reversal in the positive trend observed in the previous years. This decline could raise concerns about Vital Energy Inc.'s ability to efficiently utilize its assets to generate operating income moving forward.

In conclusion, the analysis of Vital Energy Inc.'s operating ROA highlights fluctuations in performance over the years, with both positive and negative trends observed. Further investigation into the company's operational efficiency and asset management may be necessary to understand the factors influencing these fluctuations and to identify areas for improvement.