Diamondback Energy Inc (FANG)
Total 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 |
| Total assets | US$ in thousands | 67,292,000 | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 |
| Total asset turnover | 0.16 | 0.29 | 0.37 | 0.30 | 0.16 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,023,000K ÷ $67,292,000K
= 0.16
The total asset turnover ratio measures how efficiently a company generates sales revenue from its total assets. Diamondback Energy Inc's total asset turnover has shown fluctuations over the past five years. In December 31, 2020, the ratio was 0.16, indicating that the company generated $0.16 in sales for every $1 of assets.
However, by December 31, 2022, the total asset turnover had improved to 0.37, suggesting that the company was using its assets more efficiently to generate sales revenue. This improvement continued into December 31, 2023, with a ratio of 0.29, before declining slightly to 0.16 by December 31, 2024.
Overall, the trend in total asset turnover for Diamondback Energy Inc indicates fluctuations in how effectively the company is utilizing its assets to generate sales revenue. It is essential for the company to focus on maintaining and improving this ratio to ensure efficient use of its assets in driving sales growth.
Peer comparison
Dec 31, 2024