Vital Energy Inc. (VTLE)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -173,521 695,078 631,512 145,008 -874,173
Total stockholders’ equity US$ in thousands 2,700,570 2,785,260 1,110,750 513,780 -21,443
ROE -6.43% 24.96% 56.85% 28.22% —

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-173,521K ÷ $2,700,570K
= -6.43%

The return on equity (ROE) of Vital Energy Inc. has shown significant fluctuations over the years. In 2020, the ROE was not available, possibly indicating a lack of profitability or relevant data for that period. However, in 2021, the ROE improved significantly to 28.22%, showcasing a positive trend in the company's ability to generate profit from shareholders' equity.

Subsequently, in 2022, the ROE surged to 56.85%, indicating a substantial increase in profitability and efficiency in utilizing shareholders' equity to generate earnings. However, there was a notable decline in 2023, with the ROE dropping to 24.96%, suggesting a potential decrease in profitability or changes in the company's capital structure.

Moreover, in 2024, the ROE turned negative at -6.43%, signaling that the company's net income may have decreased to a level where it eroded shareholders' equity. This negative ROE could raise concerns about the company's financial health and operational performance.

Overall, while Vital Energy Inc. has displayed periods of strong profitability and efficient use of shareholder funds, the significant fluctuations in ROE highlight the need for a thorough analysis of the company's financial and operational strategies to sustain long-term profitability and shareholder value.