Diamondback Energy Inc (FANG)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 10,029,000 | 4,871,000 | 6,778,000 | 4,231,000 | 644,000 |
| Revenue | US$ in thousands | 11,023,000 | 8,412,000 | 9,643,000 | 6,797,000 | 2,813,000 |
| Gross profit margin | 90.98% | 57.91% | 70.29% | 62.25% | 22.89% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $10,029,000K ÷ $11,023,000K
= 90.98%
Diamondback Energy Inc has demonstrated a notable improvement in its gross profit margin over the years, reflecting increasing efficiency in its core operations. The gross profit margin increased significantly from 22.89% as of December 31, 2020, to 90.98% as of December 31, 2024. This upward trend indicates the company's ability to effectively control its production costs relative to its revenues.
The substantial rise in the gross profit margin signifies that Diamondback Energy has been able to enhance its pricing strategies, manage its production expenses, or achieve higher selling prices for its products. The company's ability to consistently increase its gross profit margin reflects positively on its operational efficiency and competitiveness in the industry.
Investors and stakeholders may view Diamondback Energy's improving gross profit margin as a positive indicator of the company's financial health and its potential for generating greater profitability from its core business activities. However, it is essential to continue monitoring the gross profit margin along with other financial metrics to gain a holistic understanding of the company's overall performance and financial stability.
Peer comparison
Dec 31, 2024