Vital Energy Inc. (VTLE)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,785,260	1,110,750	513,780	-21,443	841,874
ROE		24.96%	56.85%	28.22%	—	-40.68%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $695,078K ÷ $2,785,260K
= 24.96%

Vital Energy Inc.'s return on equity (ROE) has shown significant fluctuations in recent years. In 2023, the ROE was 24.96%, representing a decrease from the previous year's 56.85%. Despite the decline, the ROE remains positive, indicating that the company generated a reasonable return for its shareholders relative to its equity base in 2023.

The substantial drop in ROE from 2022 to 2023 suggests a potential decrease in profitability or efficiency in the use of shareholder equity during the latest reporting period. Further analysis of the company's financial performance and factors affecting profitability in 2023 would be warranted to fully understand the drivers behind this decline.

It is worth noting that in 2021, the company achieved an ROE of 28.22%, indicating a relatively healthy return for shareholders that year. The negative ROE of -40.68% in 2019 presents a concerning trend, suggesting that the company struggled to generate a positive return on equity in that particular year.

Overall, the fluctuating ROE figures for Vital Energy Inc. highlight the importance of monitoring and analyzing this ratio over time to assess the company's financial performance and ability to generate returns for its shareholders.