Diamondback Energy Inc (FANG)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	8.57	56.21	42.76	41.39	65.73
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	849.62	—

1. Inventory Turnover: Diamondback Energy Inc's inventory turnover ratio has shown fluctuations over the years. The ratio declined from 65.73 in 2020 to 41.39 in 2021, increased to 42.76 in 2022, further increased to 56.21 in 2023, and then significantly dropped to 8.57 in 2024. A high inventory turnover ratio indicates efficient management of inventory levels, but the drastic decrease in 2024 could suggest potential issues with inventory management or sales.

2. Receivables Turnover: There is no data available for receivables turnover, which makes it challenging to assess the efficiency of Diamondback Energy Inc in collecting outstanding receivables from customers. The absence of information on this ratio limits the insights into the company's credit and collection policies.

3. Payables Turnover: Similar to receivables turnover, there is no data provided for payables turnover, making it impossible to evaluate how effectively the company manages its accounts payable. Payables turnover ratio is crucial for understanding the company's ability to pay its suppliers on time and optimize working capital.

4. Working Capital Turnover: The working capital turnover ratio was 849.62 in 2021, but there is no data available for the subsequent years. A high working capital turnover indicates efficient utilization of working capital to generate sales revenue. The absence of data for the following years limits the ability to assess the company's effectiveness in utilizing its working capital.

In summary, while the data provides some insights into Diamondback Energy Inc's inventory turnover and working capital turnover, the lack of information on receivables turnover and payables turnover hinders a comprehensive assessment of the company's overall efficiency in managing its operating cycle.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	42.60	6.49	8.54	8.82	5.55
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The activity ratios for Diamondback Energy Inc provide insights into the efficiency of the company in managing its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- Diamondback Energy Inc's DOH has shown fluctuations over the years. In 2020, it was at 5.55 days, which increased to 8.82 days in 2021, slightly decreased to 8.54 days in 2022, and further decreased to 6.49 days in 2023. However, there was a significant spike to 42.60 days in 2024, indicating a possible issue in managing inventory levels efficiently in that year.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the Days of Sales Outstanding (DSO) for Diamondback Energy Inc for any of the years, meaning we do not have insights into how quickly the company collects payments from its customers.

3. Number of Days of Payables:
- Similar to DSO, the information on the Number of Days of Payables for Diamondback Energy Inc is not available for any of the years specified, which means we cannot evaluate how long the company takes to pay its suppliers.

Overall, based on the available data, Diamondback Energy Inc's inventory management efficiency varied over the years, with a notable increase in DOH in 2024. However, without additional information on DSO and payables, a comprehensive analysis of the company's overall activity ratios and working capital management is limited. Further information would be needed to provide a more thorough assessment.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	0.41	0.33	0.17
Total asset turnover	0.16	0.29	0.37	0.30	0.16

Diamondback Energy Inc's fixed asset turnover has shown an upward trend over the years, increasing from 0.17 in 2020 to 0.41 in 2022, indicating improved efficiency in generating sales from its fixed assets. However, the ratio was not available for 2023 and 2024, which may suggest incomplete data or changes in the company's asset base during those years.

In terms of total asset turnover, Diamondback Energy experienced a steady increase from 0.16 in 2020 to 0.37 in 2022, reflecting the company's ability to generate revenue relative to its total assets. However, there was a slight decline in 2023 to 0.29 before dropping significantly to 0.16 in 2024. This decline may be concerning as it indicates a decrease in the company's revenue generation efficiency relative to its total assets in the most recent year.

Overall, while Diamondback Energy has shown improvement in utilizing its fixed assets efficiently, the fluctuation in total asset turnover requires further investigation to understand the underlying reasons and potential implications for the company's long-term performance.