Vital Energy Inc. (VTLE)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	695,078	631,512	145,008	-874,173	-342,459
Total assets	US$ in thousands	5,149,580	2,726,110	2,551,820	1,442,610	2,264,440
ROA		13.50%	23.17%	5.68%	-60.60%	-15.12%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $695,078K ÷ $5,149,580K
= 13.50%

The return on assets (ROA) of Vital Energy Inc. has shown significant fluctuations over the past five years. In 2023, the ROA stands at 13.50%, representing a decrease from the previous year's figure of 23.17%. This decline suggests that the company's ability to generate profits from its assets has weakened.

In 2022, the ROA was at a relatively high level of 23.17%, indicating that the company was efficient in utilizing its assets to generate income. The significant increase from 2021's ROA of 5.68% reflects an improvement in profitability and asset utilization.

However, in 2020, the ROA plummeted to -60.60%, indicating a substantial loss generated from the company's assets. This negative ROA suggests that Vital Energy Inc. experienced financial challenges and inefficiencies in asset management during that year.

Similarly, in 2019, the ROA was negative at -15.12%, indicating another period of poor performance in generating profits from assets.

Overall, Vital Energy Inc.'s ROA has been volatile, with both positive and negative values observed in recent years. Investors and stakeholders should closely monitor the company's asset utilization and profitability trends to assess its financial performance and sustainability.