Diamondback Energy Inc (FANG)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,110,000 | 2,022,000 | 7,825,000 | 1,948,000 | 1,621,000 | 1,916,000 | 918,000 | 1,160,000 | 1,392,000 | 1,031,000 | 1,201,000 | 1,347,000 | 1,446,000 | 1,464,000 | 602,000 | 851,000 | 602,000 | 558,000 | 654,000 | 1,268,000 |
| 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 |
| Current ratio | 0.44 | 0.45 | 3.66 | 0.92 | 0.77 | 0.89 | 0.43 | 0.62 | 0.81 | 0.61 | 0.73 | 0.72 | 1.01 | 0.73 | 0.49 | 0.46 | 0.49 | 0.45 | 0.62 | 0.95 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,110,000K ÷ $4,811,000K
= 0.44
The current ratio of Diamondback Energy Inc has fluctuated over the past few years, ranging from as low as 0.43 to as high as 3.66. The current ratio measures the company's ability to cover its short-term obligations with its current assets. An ideal current ratio is generally considered to be around 2, indicating that the company has twice as many current assets as current liabilities.
Diamondback's current ratio seems to have been below 1 for several quarters, which indicates that the company may have had difficulty meeting its short-term liabilities using its current assets alone. However, the current ratio witnessed significant improvement in June 30, 2024, where it spiked to 3.66. This could indicate a positive shift in the company's liquidity position, with potentially more current assets available to cover its short-term obligations.
Overall, it would be important to further investigate the reasons behind the significant fluctuations in Diamondback's current ratio over time to assess the company's liquidity management and financial health accurately.
Peer comparison
Dec 31, 2024