Diamondback Energy Inc (FANG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.03% | 98.36% | 97.72% | -117.42% | 77.27% |
| Operating profit margin | 54.33% | 67.49% | 58.86% | -194.67% | 17.53% |
| Pretax margin | 48.20% | 57.66% | 41.39% | -199.82% | 7.24% |
| Net profit margin | 37.36% | 45.48% | 32.10% | -160.58% | 6.05% |
Diamondback Energy Inc has shown consistent and strong gross profit margins of 100% over the past five years, indicating effective cost management and pricing strategies in their operations.
The operating profit margin has displayed variability, with a peak in 2019 at 67.63% and a low in 2020 at 19.02%. However, it has generally remained healthy, with the latest value at 54.46%, showing the company's ability to generate profits from its core business activities.
The pretax margin has also fluctuated, with a significant negative value in 2020 (-205.33%) due to extraordinary items or losses that year. However, in the most recent year, the pretax margin has improved to 50.50%, reflecting better operational efficiency and profitability before accounting for taxes.
The net profit margin has shown a similar pattern, with a negative value in 2020 (-160.58%) due to exceptional charges. The margin has since recovered and reached 37.10% in the latest period, indicating the company's ability to generate profits after all expenses and taxes are accounted for.
Overall, Diamondback Energy Inc's profitability ratios demonstrate operational effectiveness and an ability to maintain solid profit margins despite some fluctuations in certain years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.76% | 24.83% | 17.47% | -31.08% | 2.95% |
| Return on assets (ROA) | 10.84% | 16.73% | 9.53% | -25.64% | 1.02% |
| Return on total capital | 18.18% | 26.92% | 16.08% | -37.62% | 2.47% |
| Return on equity (ROE) | 18.91% | 29.22% | 18.05% | -51.36% | 1.81% |
Diamondback Energy Inc has shown a consistent improvement in its operating profitability over the past five years, as evidenced by the increasing trend in Operating Return on Assets (Operating ROA) from 6.31% in 2019 to 15.80% in 2023. This indicates that the company's operating income generated from its assets has been steadily increasing.
Return on Assets (ROA) also reflects a positive trend, with an improvement from 1.02% in 2019 to 10.76% in 2023. This shows that Diamondback Energy has been able to generate a higher level of profit relative to its total assets over the years.
Return on Total Capital has also demonstrated a positive trend, increasing from 7.98% in 2019 to 19.90% in 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders.
Return on Equity (ROE) has shown a similar upward trend, improving from 1.81% in 2019 to 18.77% in 2023. This highlights the company's ability to generate higher returns for its equity shareholders over the years.
Overall, Diamondback Energy Inc's profitability ratios reflect consistent improvement and efficiency in utilizing its assets and capital to generate returns for its investors, which suggests a positive outlook for the company's financial performance.