Diamondback Energy Inc (FANG)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	2.63	2.36	2.50	185.33	24.35
Receivables turnover	9.93	9.59	10.13	6.44	6.45
Payables turnover	0.64	1.24	4.31	86.14	5.03
Working capital turnover	—	—	849.62	—	—

Inventory turnover for Diamondback Energy Inc has been consistently reported as 0.00 over the past five years. This indicates that the company is effectively managing its inventory levels, possibly due to the nature of its industry or business model.

Receivables turnover has shown a positive trend, increasing from 6.45 in 2019 to 9.93 in 2023. This suggests that Diamondback Energy Inc is collecting its accounts receivables more efficiently, indicating effective management of credit policies and collection procedures.

Payables turnover has been consistently reported as 0.00 over the past five years, which could indicate that the company is managing its payables effectively by maintaining positive supplier relationships without significantly impacting its cash flow.

The working capital turnover for Diamondback Energy Inc was exceptionally high in 2021, indicating that the company generated significant revenue relative to its working capital that year. This could be a result of efficient operations or business strategies implemented during that period.

In conclusion, Diamondback Energy Inc appears to be effectively managing its inventory, receivables, and payables, with a notable increase in receivables turnover over the years.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	138.52	154.78	146.00	1.97	14.99
Days of sales outstanding (DSO)	days	36.75	38.08	36.03	56.70	56.63
Number of days of payables	days	573.89	293.39	84.77	4.24	72.51

The days of sales outstanding (DSO) for Diamondback Energy Inc have been showing a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable more efficiently. In 2023, DSO decreased to 36.75 days from 38.08 days in 2022 and 36.03 days in 2021. This suggests that the company is converting its accounts receivable into cash at a faster pace, which is a positive sign of effective credit management.

The days of inventory on hand (DOH) data is not available in the table provided, so we are unable to analyze this particular activity ratio for Diamondback Energy Inc. DOH is a key ratio that measures how long it takes for a company to sell its inventory, and a lower DOH typically indicates efficient inventory management.

Additionally, the number of days of payables information is not provided in the table, which limits our ability to assess the company's efficiency in paying its suppliers.

Overall, based on the data presented for DSO, Diamondback Energy Inc has been managing its accounts receivable effectively, but a complete analysis of activity ratios would require data for days of inventory on hand and days of payables as well.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	0.32	0.41	0.33	0.17	0.18
Total asset turnover	0.29	0.37	0.30	0.16	0.17

Diamondback Energy Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, show the company's efficiency in utilizing its assets to generate revenue over the years.

The fixed asset turnover has fluctuated, with a notable decrease from 2021 to 2022, followed by a slight increase in 2023. This ratio indicates that Diamondback Energy Inc has been less efficient in generating sales from its fixed assets compared to previous years, which may be a concern as it suggests a lower level of utilization of these assets.

Similarly, the total asset turnover ratio has also experienced fluctuations, showing a decreasing trend overall. The decline in total asset turnover implies that the company's ability to generate sales from all its assets has weakened over the years, which could potentially indicate inefficient use of resources or a decline in sales relative to the assets in place.

Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios may raise concerns about Diamondback Energy Inc's operational efficiency and asset utilization, highlighting the need for further investigation into the company's asset management strategies and sales performance to address potential inefficiencies.