Diamondback Energy Inc (FANG)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	4,570,000	4,621,000	4,895,000	5,873,000	6,508,000	6,563,000	6,113,000	5,090,000	4,001,000	1,944,000	-476,000	-4,103,000	-5,476,000	-5,114,000	-3,509,000	-426,000	695,000	1,274,000	1,193,000	1,063,000
Total assets	US$ in thousands	29,001,000	28,049,000	27,587,000	27,589,000	26,209,000	23,843,000	23,448,000	23,331,000	22,898,000	22,639,000	22,898,000	21,996,000	17,619,000	18,760,000	20,337,000	23,386,000	23,531,000	23,553,000	23,531,000	23,531,000
Operating ROA		15.76%	16.47%	17.74%	21.29%	24.83%	27.53%	26.07%	21.82%	17.47%	8.59%	-2.08%	-18.65%	-31.08%	-27.26%	-17.25%	-1.82%	2.95%	5.41%	5.07%	4.52%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $4,570,000K ÷ $29,001,000K
= 15.76%

Diamondback Energy Inc's operating return on assets (operating ROA) has shown a decreasing trend over the past eight quarters. The operating ROA decreased from 21.87% in Q1 2022 to 15.80% in Q4 2023. This decline may be indicative of challenges or inefficiencies impacting the company's ability to generate profits from its assets through core operations. Further analysis would be needed to pinpoint specific factors contributing to the declining operating ROA and assess the company's operational performance and asset utilization efficiency.