Diamondback Energy Inc (FANG)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	11,023,000	8,412,000	9,643,000	6,797,000	2,813,000
Property, plant and equipment	US$ in thousands	—	—	23,759,000	20,619,000	16,214,000
Fixed asset turnover		—	—	0.41	0.33	0.17

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,023,000K ÷ $—K
= —

The fixed asset turnover ratio for Diamondback Energy Inc has shown an increasing trend over the past few years, indicating improved efficiency in generating sales from its fixed assets. In December 31, 2020, the company had a fixed asset turnover ratio of 0.17, signaling that for every dollar invested in fixed assets, the company generated $0.17 in sales. This ratio increased to 0.33 by December 31, 2021 and further to 0.41 by December 31, 2022, suggesting that the company has been utilizing its fixed assets more effectively to drive revenue.

However, it is important to note that data for December 31, 2023, and December 31, 2024, is unavailable, potentially due to the unavailability of financial information for those periods. This gap in data limits a comprehensive analysis of the company's fixed asset turnover in those years.

Overall, the increasing trend in the fixed asset turnover ratio of Diamondback Energy Inc reflects an improving efficiency in utilizing its fixed assets to generate revenue. It is crucial for the company to maintain this trend to ensure sustainable growth and profitability in the future.