Diamondback Energy Inc (FANG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 67,292,000 | 65,747,000 | 35,637,000 | 29,690,000 | 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 | 17,619,000 | 21,996,000 | 17,619,000 | 18,760,000 | 20,337,000 | 23,386,000 |
| Operating ROA | 6.56% | 6.39% | 9.85% | 11.29% | 11.19% | 11.75% | 17.74% | 21.29% | 24.83% | 22.03% | 20.48% | 16.20% | 11.75% | 8.59% | -2.70% | -18.65% | -31.08% | -27.26% | -17.25% | -1.82% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,411,000K ÷ $67,292,000K
= 6.56%
Operating Return on Assets (Operating ROA) is a financial metric that indicates the profitability of a company relative to its total assets used to generate operating income. Looking at the data provided for Diamondback Energy Inc, we observe the following trends:
- Diamondback Energy Inc's Operating ROA was negative in the first few quarters of the analyzed period, indicating that the company was generating operating losses compared to the value of its assets.
- Starting from the third quarter of 2021, the Operating ROA turned positive, suggesting an improvement in the company's profitability in relation to the assets deployed.
- The positive trend continued until the fourth quarter of 2022, reaching a peak Operating ROA of 24.83%, demonstrating a significant improvement in operational efficiency and profitability.
- However, after the fourth quarter of 2022, the Operating ROA started to decline gradually, indicating a potential decrease in profitability relative to the assets used for operations.
- As of the end of December 2024, Diamondback Energy Inc's Operating ROA stood at 6.56%, which is lower compared to the peak in late 2022 but still positive, indicating that the company is generating profit from its assets, albeit at a lower rate.
Overall, the analysis of Diamondback Energy Inc's Operating ROA shows a fluctuating performance over the analyzed period, with both positive and negative trends, highlighting the importance of continuously monitoring and evaluating the company's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2024