Diamondback Energy Inc (FANG)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	8,412,000	8,214,000	8,311,000	9,160,000	9,643,000	9,635,000	9,108,000	8,021,000	6,797,000	5,544,000	4,354,000	3,098,000	2,813,000	3,148,000	3,403,000	3,999,000	3,964,000	3,493,000	3,055,000	2,561,000
Total assets	US$ in thousands	29,001,000	28,049,000	27,587,000	27,589,000	26,209,000	23,843,000	23,448,000	23,331,000	22,898,000	22,639,000	22,898,000	21,996,000	17,619,000	18,760,000	20,337,000	23,386,000	23,531,000	23,553,000	23,531,000	23,531,000
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

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,412,000K ÷ $29,001,000K
= 0.29

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It is calculated by dividing the company's total revenue by its average total assets.

Analyzing Diamondback Energy Inc's total asset turnover over the past eight quarters, we can see a gradual decline in the ratio. In Q4 2022, the total asset turnover was at its highest point of 0.37 before starting to decrease. The ratio continued to decline in subsequent quarters, reaching its lowest point of 0.29 in Q4 2023.

A decreasing total asset turnover ratio can indicate that the company is becoming less efficient in generating sales from its assets. This could be attributed to various factors such as underutilization of assets, inefficient operations, or declining sales. Investors and analysts should closely monitor this trend to assess the company's overall efficiency and productivity in utilizing its assets to generate revenue.