Diamondback Energy Inc (FANG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.98% | 57.91% | 70.29% | 62.25% | 22.89% |
| Operating profit margin | 39.88% | 54.33% | 67.49% | 58.86% | 19.45% |
| Pretax margin | 40.83% | 50.50% | 59.48% | 42.77% | -205.33% |
| Net profit margin | 30.28% | 37.36% | 45.48% | 32.10% | -166.09% |
Based on the provided data, Diamondback Energy Inc has shown significant improvements in its profitability ratios over the years.
1. Gross Profit Margin:
- Diamondback Energy's gross profit margin has increased steadily from 22.89% in 2020 to 90.98% in 2024. This indicates that the company has been able to effectively control its production costs and generate higher profits from its core business activities.
2. Operating Profit Margin:
- The operating profit margin of Diamondback Energy has also shown a positive trend, increasing from 19.45% in 2020 to 39.88% in 2024. This indicates that the company has been able to improve its operational efficiency and profitability.
3. Pretax Margin:
- Diamondback Energy's pretax margin turned positive in 2021 and continued to increase to 40.83% in 2024. This suggests that the company has been able to manage its expenses and generate higher profits before taxes.
4. Net Profit Margin:
- The net profit margin of Diamondback Energy has also improved over the years, increasing from a negative -166.09% in 2020 to 30.28% in 2024. This indicates that the company has been able to control its expenses and enhance its bottom line profitability.
Overall, Diamondback Energy Inc has demonstrated strong improvements in its profitability ratios, showcasing efficient cost management and enhanced profitability in its operations over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.53% | 15.76% | 24.83% | 17.47% | 3.10% |
| Return on assets (ROA) | 4.96% | 10.84% | 16.73% | 9.53% | -26.52% |
| Return on total capital | 12.69% | 26.62% | 39.94% | 25.65% | -63.40% |
| Return on equity (ROE) | 8.85% | 18.91% | 29.22% | 18.05% | -53.13% |
Diamondback Energy Inc's profitability ratios show varying levels of performance over the years.
1. Operating return on assets (Operating ROA) has increased significantly from 3.10% in 2020 to 24.83% in 2022, indicating improved operational efficiency in generating profits from its assets. However, there was a slight decline to 15.76% in 2023 and further to 6.53% in 2024.
2. Return on assets (ROA) improved from a negative figure of -26.52% in 2020 to a positive 16.73% in 2022 before decreasing to 4.96% in 2024. This ratio measures the company's ability to generate profits from its total assets.
3. Return on total capital demonstrates a similar positive trend, rising from -63.40% in 2020 to 39.94% in 2022, but then declining to 12.69% in 2024. This ratio evaluates the return generated from both debt and equity invested in the company.
4. Return on equity (ROE) experienced growth from a negative -53.13% in 2020 to 29.22% in 2022 before falling to 8.85% in 2024. ROE indicates the profitability of the company from the perspective of its shareholders.
Overall, Diamondback Energy Inc has shown improvement in profitability metrics up to 2022 but faced some decline in performance in subsequent years. It is important to further analyze the company's financial strategy and operational efficiency to sustain and enhance profitability in the future.