Diamondback Energy Inc (FANG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,110,000 | 1,621,000 | 1,392,000 | 1,446,000 | 602,000 |
| Total current liabilities | US$ in thousands | 4,811,000 | 2,108,000 | 1,716,000 | 1,438,000 | 1,236,000 |
| Current ratio | 0.44 | 0.77 | 0.81 | 1.01 | 0.49 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,110,000K ÷ $4,811,000K
= 0.44
The current ratio for Diamondback Energy Inc has shown fluctuations over the past few years. In December 31, 2020, the current ratio was 0.49, indicating that the company may have had difficulty meeting its short-term obligations with its current assets. However, by December 31, 2021, the current ratio improved to 1.01, suggesting that the company had sufficient current assets to cover its short-term liabilities.
Subsequently, the ratio declined to 0.81 by December 31, 2022, and further to 0.77 by December 31, 2023. These decreases may indicate potential liquidity challenges or issues in managing current assets and liabilities efficiently.
By December 31, 2024, the current ratio reached its lowest point at 0.44, raising concerns about the company's ability to fulfill its short-term obligations without adequate current assets.
Overall, the trend in Diamondback Energy Inc's current ratio indicates fluctuations in its liquidity position over the years, highlighting the importance of closely monitoring the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024