Diamondback Energy Inc (FANG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,570,000 | 6,508,000 | 4,001,000 | -5,476,000 | 695,000 |
| Total assets | US$ in thousands | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 | 23,531,000 |
| Operating ROA | 15.76% | 24.83% | 17.47% | -31.08% | 2.95% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,570,000K ÷ $29,001,000K
= 15.76%
Diamondback Energy Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stood at 15.80%, representing a decrease from the previous year's value of 24.88%. This decline suggests a decrease in the company's ability to generate operating income from its assets compared to the prior year.
Comparing the 2023 operating ROA to 2021 and 2022, the current year's performance is still higher. In 2021, the operating ROA was 17.81%, indicating that the company was more effective in generating operating income from its assets in that year than in 2023. However, the company's performance improved in 2022, with an operating ROA of 24.88%, demonstrating a significant increase in efficiency in utilizing its assets to generate operating income.
Looking back further, Diamondback Energy Inc's operating returns were lower in 2020 and 2019, with values of 3.04% and 6.31%, respectively. This suggests that the company has made progress in optimizing its asset utilization to generate operating income since that time.
Overall, Diamondback Energy Inc has demonstrated varying levels of efficiency in generating operating income from its assets over the past five years, with fluctuations in operating ROA reflecting changes in the company's operational performance and effectiveness in utilizing its asset base.
Peer comparison
Dec 31, 2023