Vital Energy Inc. (VTLE)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	695,078	531,868	864,498	832,233	631,512	729,564	528,873	133,666	145,008	-237,200	-611,464	-1,024,258	-874,173	-949,962	-977,159	-258,322	-342,459	48,835	368,514	228,584
Total stockholders’ equity	US$ in thousands	2,785,260	1,773,060	1,603,570	1,225,370	1,110,750	1,000,670	679,456	423,788	513,780	224,062	-154,282	-68,568	-21,443	141,512	376,020	919,221	841,874	1,079,250	1,344,320	1,171,430
ROE		24.96%	30.00%	53.91%	67.92%	56.85%	72.91%	77.84%	31.54%	28.22%	-105.86%	—	—	—	-671.29%	-259.87%	-28.10%	-40.68%	4.52%	27.41%	19.51%

December 31, 2023 calculation

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

The return on equity (ROE) of Vital Energy Inc. has shown significant fluctuations over the past several quarters, ranging from negative values to double-digit positive percentages.

In the most recent quarter (December 31, 2023), the ROE was 24.96%, indicating that for every dollar of shareholder equity, the company generated a return of about 25 cents. This is a respectable ROE figure, reflecting the company's ability to generate profits relative to its shareholder equity.

The ROE reached its peak at 77.84% in the second quarter of 2022, signifying a period of strong performance where the company was highly efficient in utilizing its equity to generate profits.

However, there are also periods of negative ROE, such as the third quarter of 2021 and earlier quarters, indicating that the company experienced losses that exceeded its equity - a concerning sign of financial distress or inefficiency.

The fluctuating ROE values suggest fluctuations in the company's profitability, asset utilization, and financial leverage. Analysts and investors should closely monitor these fluctuations to understand the company's financial health and performance over time.