Diamondback Energy Inc (FANG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,621,000 | 1,392,000 | 1,446,000 | 602,000 | 869,000 |
| Total current liabilities | US$ in thousands | 2,108,000 | 1,716,000 | 1,438,000 | 1,236,000 | 1,263,000 |
| Current ratio | 0.77 | 0.81 | 1.01 | 0.49 | 0.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,621,000K ÷ $2,108,000K
= 0.77
The current ratio of Diamondback Energy Inc has fluctuated over the past five years, indicating varying levels of liquidity. As of December 31, 2023, the current ratio stands at 0.77, reflecting a decrease compared to the previous year. This implies that the company may have difficulties meeting its short-term obligations with its current assets alone.
Looking back, the current ratio was relatively stable in 2021 at 1.01, suggesting that the company had sufficient current assets to cover its current liabilities. However, in 2020, the current ratio was significantly lower at 0.49, indicating potential liquidity challenges that year.
Overall, the current ratio of Diamondback Energy Inc has shown some inconsistency, which could point to fluctuations in the company's ability to manage its short-term financial obligations efficiently. Further analysis of the company's liquidity position and management of current assets may be warranted to assess its financial health accurately.
Peer comparison
Dec 31, 2023