Vital Energy Inc. (VTLE)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -198,448 533,698 492,326 479,000 661,560 445,330 763,481 961,417 762,135 862,477 667,670 257,112 262,038 -125,038 -507,955 -925,398 -773,110 -864,978 -903,881 -187,427
Long-term debt US$ in thousands 2,454,240 2,433,270 1,662,260 2,097,040 1,609,420 1,926,970 1,619,600 1,163,810 1,113,020 1,181,580 1,291,240 1,421,820 1,425,860 1,349,900 1,306,110 1,145,370 1,179,270 1,218,950 1,258,160 1,257,380
Total stockholders’ equity US$ in thousands 2,700,570 3,055,840 2,835,900 2,798,800 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
Return on total capital -3.85% 9.72% 10.95% 9.78% 15.05% 12.04% 23.69% 40.24% 34.27% 39.52% 33.88% 13.93% 13.51% -7.94% -44.10% -85.94% -66.77% -63.58% -55.31% -8.61%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-198,448K ÷ ($2,454,240K + $2,700,570K)
= -3.85%

Vital Energy Inc.'s return on total capital has shown a significant fluctuation over the past few years. The company experienced negative returns in the range of -8.61% to -85.94% from March 2020 to March 2021, indicating operational challenges and inefficiencies in capital utilization. However, there was a notable improvement in returns from December 2021 to September 2022, with values increasing to the range of 13.51% to 39.52%, suggesting a potential turnaround in performance and capital management.

The trend continued positively with returns ranging from 34.27% in December 2022 to 15.05% in December 2023, demonstrating sustained improvement in the company's ability to generate profits relative to its total capital employed. However, there was a slight decline in returns in the following periods, with values ranging from 9.78% to -3.85% as of December 2024, indicating a possible setback or challenges faced by Vital Energy Inc. during that period.

Overall, the analysis of return on total capital for Vital Energy Inc. reflects a mix of challenges and improvements in capital efficiency and profitability over the evaluated period, highlighting the importance of consistent monitoring and management of the company's capital resources.