Diamondback Energy Inc (FANG)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	25.05	28.22	62.38	52.98	44.40	36.23	47.23	43.77	43.43	37.47	33.42	33.92	30.77	44.62	65.45	38.73	65.73	71.58	72.50	69.81
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	—	—	1.63	—	—	—	—	—	—	—	—	—	849.12	—	—	—	—	—	—	—

Based on the provided data, the activity ratios of Diamondback Energy Inc can be analyzed as follows:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company is managing its inventory. Diamondback Energy Inc's inventory turnover has shown some fluctuations over the period, ranging from a high of 72.50 in June 2020 to a low of 25.05 in December 2024. A generally high turnover ratio suggests that the company is selling its inventory quickly, which is favorable.

2. Receivables Turnover:
- Unfortunately, data for receivables turnover is not available, making it difficult to assess how effectively the company is collecting its accounts receivable. This ratio is important in determining the efficiency of the company's credit policy and collection efforts.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not provided. This ratio helps in understanding how quickly the company is paying its suppliers and managing its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company's working capital is being utilized to generate sales. Diamondback Energy Inc's working capital turnover improved significantly from 849.12 in December 2021 to 1.63 in June 2024. A higher ratio indicates that the company is generating more sales with less investment in working capital, which is a positive sign of operational efficiency.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into Diamondback Energy Inc's operational efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity management.

Average number of days

		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
Days of inventory on hand (DOH)	days	14.57	12.93	5.85	6.89	8.22	10.07	7.73	8.34	8.40	9.74	10.92	10.76	11.86	8.18	5.58	9.42	5.55	5.10	5.03	5.23
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Diamondback Energy Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH measures how long it takes for a company to turn its inventory into sales.
- The DOH for Diamondback Energy has fluctuated over the period, ranging from as low as 5.03 days to as high as 14.57 days.
- A lower DOH is generally preferred as it indicates efficient inventory management. However, a sudden spike in DOH may suggest excess inventory or slowing sales.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the DSO data is not provided, so we cannot analyze the company's efficiency in collecting outstanding sales on credit.
- DSO measures the average number of days a company takes to collect revenue after a sale is made.

3. Number of Days of Payables:
- Similarly, data for the number of days of payables is not provided in the dataset.
- This ratio would indicate the average number of days a company takes to pay its suppliers and creditors.

Overall, based on the available data, we can see that Diamondback Energy Inc has shown some variability in its inventory turnover efficiency, but without information on DSO and payables, a comprehensive analysis of the company's overall activity ratios is limited.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	0.33	0.36	0.41	0.44	0.43	0.38	0.33	0.27	0.21	0.15	0.17	0.18	0.18	0.19
Total asset turnover	0.16	0.15	0.26	0.29	0.29	0.29	0.30	0.33	0.37	0.40	0.39	0.34	0.30	0.24	0.25	0.14	0.16	0.17	0.17	0.17

Diamondback Energy Inc's fixed asset turnover ratio has shown an increasing trend over the past few years, indicating improved efficiency in generating revenue from its fixed assets. The ratio increased steadily from 0.19 in March 2020 to a peak of 0.44 in September 2022, before slightly declining to 0.33 in June 2023. However, there is missing data for the ratio from September 2023 onwards.

On the other hand, Diamondback Energy Inc's total asset turnover ratio has been more volatile, with fluctuations in the efficiency of generating revenue from all assets. The ratio ranged from 0.14 in March 2021 to a peak of 0.40 in September 2022, before stabilizing around 0.29 to 0.30 from March 2023 to June 2024. The decrease in the total asset turnover ratio in the last quarters of 2024 may suggest a potential slowdown in the company's revenue generation from its total assets.