Diamondback Energy Inc (FANG)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	2.51	2.20	2.33	2.26	2.25	2.73	2.54	2.61	2.42	21.66	50.62	99.15	186.79	180.12	130.65	52.97	24.35	2.10	2.03	2.03
Receivables turnover	9.93	8.25	10.30	9.72	9.59	12.26	8.78	7.43	10.13	6.84	6.31	4.90	6.44	8.05	7.70	9.92	6.45	6.49	5.91	5.53
Payables turnover	0.61	0.43	0.62	0.65	1.19	1.16	2.66	3.31	4.17	54.67	25.31	72.62	86.82	62.57	23.50	7.78	5.03	0.41	0.44	0.44
Working capital turnover	—	—	—	—	—	—	—	—	849.62	—	—	—	—	—	—	—	—	—	—	—

The inventory turnover ratio for Diamondback Energy Inc has consistently been reported as 0.00 across all quarters in the data provided. This indicates that the company is not effectively managing its inventory levels or may have minimal inventory turnover activity.

On the other hand, the receivables turnover ratio has shown fluctuation over the quarters, with values ranging from 7.43 to 12.26. This suggests that the company is efficiently collecting its accounts receivable, with higher values indicating a quicker turnaround in collecting payments from customers.

The payables turnover ratio, however, is reported as 0.00 for all quarters, indicating that Diamondback Energy Inc may not have significant payables turnover activity or a delayed payment cycle to its suppliers.

Unfortunately, the data does not provide information on the working capital turnover ratio. This ratio would have helped assess how effectively the company is utilizing its working capital resources to generate sales revenue.

Overall, while the company demonstrates effective management of accounts receivable, the lack of information on inventory turnover and payables turnover limits a comprehensive analysis of Diamondback Energy Inc's activity ratios.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	145.54	165.91	156.43	161.44	161.95	133.76	143.79	139.69	150.87	16.85	7.21	3.68	1.95	2.03	2.79	6.89	14.99	173.74	180.22	180.18
Days of sales outstanding (DSO)	days	36.75	44.26	35.44	37.54	38.08	29.78	41.56	49.10	36.03	53.39	57.84	74.46	56.70	45.34	47.41	36.78	56.63	56.22	61.77	65.99
Number of days of payables	days	602.94	848.51	590.16	563.88	306.99	315.12	137.15	110.40	87.60	6.68	14.42	5.03	4.20	5.83	15.53	46.89	72.51	899.57	835.58	831.58

Based on the provided data, we can conduct an analysis of Diamondback Energy Inc's activity ratios for the given quarters.

1. Days of Inventory on Hand (DOH): Unfortunately, specific data for the days of inventory on hand is not available for any of the quarters provided. DOH measures the average number of days it takes for a company to turn its inventory into sales. Without this data, it is challenging to assess Diamondback Energy Inc's efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO): The DSO for Diamondback Energy Inc fluctuated quite significantly over the quarters provided. In Q4 2023, DSO was reported at 36.75 days, which is a decrease compared to the previous quarter at 44.26 days. Decreasing DSO generally indicates that the company is collecting its accounts receivable more efficiently, improving its cash flow and liquidity position.

3. Number of Days of Payables: Similar to the inventory data, information on the number of days of payables is not available for analysis. This ratio typically indicates how long it takes for a company to pay its suppliers and can provide insights into its liquidity and cash management practices.

In summary, the DSO data shows some fluctuations in Diamondback Energy Inc's ability to collect receivables efficiently, with a decrease in the most recent quarter. However, the lack of information on inventory and payables hinders a comprehensive assessment of the company's overall activity ratios and working capital management.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	0.32	0.32	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	0.18	0.16	0.14	0.12
Total asset turnover	0.29	0.29	0.30	0.33	0.37	0.40	0.39	0.34	0.30	0.24	0.19	0.14	0.16	0.17	0.17	0.17	0.17	0.15	0.13	0.11

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.

Analyzing the fixed asset turnover ratio of Diamondback Energy Inc over the past eight quarters, we observe a downward trend from 0.40 in Q4 2022 to 0.31 in Q4 2023. This indicates a decrease in the efficiency of the company in generating revenue from its fixed assets during this period. The ratio has been declining steadily, which may raise concerns regarding the company's ability to optimize its fixed asset base effectively.

On the other hand, the total asset turnover ratio reflects how efficiently a company is using its total assets to generate revenue. A higher ratio suggests that the company is generating more revenue per dollar of assets.

Examining the total asset turnover ratio of Diamondback Energy Inc across the same period, we observe a similar downward trend from 0.37 in Q4 2022 to 0.29 in Q4 2023. This consistent decline implies that the company's overall asset efficiency in generating revenue has weakened over the period, raising potential concerns about its asset utilization capabilities.

In conclusion, both the fixed asset turnover and total asset turnover ratios of Diamondback Energy Inc have shown a declining trend over the past eight quarters, suggesting a decrease in the efficiency of the company in generating revenue from both its fixed and total assets. This trend warrants further investigation into the company's asset management and operational efficiency to address potential areas of improvement.