Vital Energy Inc. (VTLE)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	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	2,264,440	2,277,650	2,619,920	2,514,790
Operating ROA		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%	-18.04%	-7.99%	10.41%	12.32%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $559,621K ÷ $5,149,580K
= 10.87%

Based on the provided data, the operating return on assets (operating ROA) for Vital Energy Inc. has been experiencing significant fluctuations over the past few quarters. In the most recent period of December 31, 2023, the operating ROA was 10.87%, indicating a decrease from the previous quarter's 13.15%.

During the earlier quarters of 2023, the operating ROA showed a general increasing trend, reaching a peak of 31.01% in March 31, 2023. This surge in operating ROA could suggest improved operational efficiency and profitability during that period.

However, looking back to the end of 2022 and the beginning of 2023, there were notably high operating ROA figures of 38.90% and 40.85%, respectively, indicating that the company was generating significant returns on its assets.

On the other hand, there are periods of negative operating ROA, such as in March 31, 2021, and December 31, 2020, where the figures were -39.12% and -59.73%, respectively. These negative values suggest that, during those periods, the company's operating income was not sufficient to cover its asset base.

Overall, the analysis of Vital Energy Inc.'s operating return on assets reveals significant variability in performance over the past few quarters. It is essential for the company to carefully monitor and manage its asset utilization and operational efficiency to ensure sustainable profitability in the future.