Diamondback Energy Inc (FANG)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	4,411,000	4,204,000	3,510,000	3,351,000	3,246,000	3,297,000	4,895,000	5,873,000	6,508,000	5,253,000	4,803,000	3,780,000	2,691,000	1,944,000	-476,000	-4,103,000	-5,476,000	-5,114,000	-3,509,000	-426,000
Revenue (ttm)	US$ in thousands	11,051,000	9,572,000	9,267,000	8,680,000	8,378,000	8,191,000	8,288,000	9,160,000	9,643,000	9,635,000	9,107,000	8,018,000	6,793,000	5,538,000	4,348,000	3,092,000	2,806,000	3,141,000	3,395,000	3,990,000
Operating profit margin		39.91%	43.92%	37.88%	38.61%	38.74%	40.25%	59.06%	64.12%	67.49%	54.52%	52.74%	47.14%	39.61%	35.10%	-10.95%	-132.70%	-195.15%	-162.81%	-103.36%	-10.68%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,411,000K ÷ $11,051,000K
= 39.91%

Diamondback Energy Inc's operating profit margin has shown a volatile trend over the past few years. The company experienced negative operating profit margins in the initial quarters, indicating that its operating expenses exceeded its operating income during those periods. However, starting from the third quarter of 2021, the trend reversed, with operating profit margins turning positive and showing a consistent increase up to the end of 2024.

The improvement in operating profit margin indicates that Diamondback Energy Inc was able to better control its operating expenses relative to its revenue generation. By achieving higher operating profit margins, the company demonstrated increased efficiency in managing its operational costs and maximizing profitability from its core business activities.

The rising trend in operating profit margin suggests positive developments for Diamondback Energy Inc's financial health and operational performance, showing a potential strengthening of its competitive position within the industry. Investors and stakeholders may view this improvement favorably as it signals a more sustainable and profitable business model for the company.