Diamondback Energy Inc (FANG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 161,000 | 370,000 | 6,911,000 | 899,000 | 582,000 | 827,000 | 18,000 | 46,000 | 157,000 | 27,000 | 43,000 | 149,000 | 654,000 | 457,000 | 104,000 | 121,000 | 104,000 | 92,000 | 51,000 | 149,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 119,000 | — | — | — | 10,000 | 509,000 | 518,000 | 525,000 | 533,000 | 532,000 | — | — |
| Total current liabilities | US$ in thousands | 4,811,000 | 4,463,000 | 2,137,000 | 2,118,000 | 2,108,000 | 2,141,000 | 2,123,000 | 1,886,000 | 1,716,000 | 1,678,000 | 1,640,000 | 1,872,000 | 1,438,000 | 1,996,000 | 1,236,000 | 1,868,000 | 1,236,000 | 1,229,000 | 1,061,000 | 1,330,000 |
| Cash ratio | 0.03 | 0.08 | 3.23 | 0.42 | 0.28 | 0.39 | 0.01 | 0.02 | 0.16 | 0.02 | 0.03 | 0.08 | 0.46 | 0.48 | 0.50 | 0.35 | 0.52 | 0.51 | 0.05 | 0.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($161,000K
+ $—K)
÷ $4,811,000K
= 0.03
The cash ratio of Diamondback Energy Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations using its cash and cash equivalents.
The company's cash ratio started at a relatively low level of 0.11 on March 31, 2020, which indicates that only 11% of its current liabilities could be covered by its cash on hand. It decreased further to 0.05 on June 30, 2020, reflecting a reduction in liquidity.
However, there was a noticeable improvement in the cash ratio from September 30, 2020, onwards, reaching its peak at 3.23 on June 30, 2024. Such a high cash ratio in June 2024 indicates that Diamondback Energy had more than enough cash to cover its short-term obligations at that time.
Despite this peak, the cash ratio dropped to 0.03 on December 31, 2024, illustrating a decrease in liquidity compared to the previous quarter. Overall, Diamondback Energy Inc's cash ratio has displayed significant variability over the analyzed period, suggesting fluctuations in its liquidity position. It would be important for stakeholders to monitor the company's cash management practices to ensure sufficient liquidity for meeting short-term obligations.
Peer comparison
Dec 31, 2024