Vital Energy Inc. (VTLE)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-22,552	478,477	570,687	574,301	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
Total assets	US$ in thousands	5,878,950	6,251,010	5,263,210	5,661,900	5,149,580	4,426,250	3,815,430	2,943,240	2,726,110	2,805,920	2,873,010	2,726,330	2,551,820	2,258,970	1,786,810	1,474,900	1,442,610	1,581,320	1,870,590	531,190
Operating ROA		-0.38%	7.65%	10.84%	10.14%	10.87%	13.15%	17.43%	31.01%	38.90%	40.85%	39.99%	32.57%	28.23%	17.66%	-1.93%	-39.12%	-59.73%	-60.33%	-60.77%	-121.42%

December 31, 2024 calculation

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

Operating ROA is a key financial metric that measures a company's ability to generate operating profit from its total assets. Vital Energy Inc.'s Operating ROA showed a significant improvement over the observation period, starting from negative values in early 2020 and gradually increasing to positive percentages by the end of 2022.

The performance of Vital Energy Inc. as indicated by its Operating ROA initially faced challenges, with deeply negative values in the first half of 2020. However, from the third quarter of 2021 onwards, the company's performance began to improve consistently, reaching positive territory in the second quarter of 2022.

The positive trend in Operating ROA indicates that Vital Energy Inc. was able to enhance its operational efficiency and profitability relative to its asset base. This improvement suggests that the company was able to generate more profit from its assets as time progressed, reflecting effective management of resources and operations.

The fluctuations in the Operating ROA values, especially the decline towards the end of 2024, may warrant further investigation to understand the factors influencing Vital Energy Inc.'s profitability and operational performance during that period. Overall, the positive trend in Operating ROA demonstrates the company's efforts to enhance its operational effectiveness and generate higher returns on its assets.