Diamondback Energy Inc (FANG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,396,000 | 4,570,000 | 6,508,000 | 4,001,000 | 547,000 |
| Total assets | US$ in thousands | 67,292,000 | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 |
| Operating ROA | 6.53% | 15.76% | 24.83% | 17.47% | 3.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,396,000K ÷ $67,292,000K
= 6.53%
Diamondback Energy Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In December 2020, the operating ROA stood at 3.10%, indicating that the company generated $0.031 in operating income for every dollar of assets. By December 2021, the operating ROA significantly increased to 17.47%, reflecting improved operational efficiency and profitability.
In December 2022, Diamondback Energy Inc's operating ROA saw a notable rise to 24.83%, reaching its peak during the period under review. This surge suggests that the company effectively utilized its assets to generate higher operating income. However, there was a decline in performance by December 2023, with the operating ROA dropping to 15.76%. This decrease may indicate challenges or changes in the company's operations affecting its ability to generate income from its assets.
By December 2024, Diamondback Energy Inc's operating ROA further decreased to 6.53%, signifying a significant decline in operational efficiency and profitability compared to the peak in 2022. It is essential for investors and stakeholders to monitor these trends in operating ROA to assess the company's ability to generate profits from its assets and to identify potential areas for improvement in operational performance.
Peer comparison
Dec 31, 2024