Diamondback Energy Inc (FANG)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,055,000 | 5,560,000 | 2,813,000 | -5,621,000 | 287,000 |
| Revenue | US$ in thousands | 8,412,000 | 9,643,000 | 6,797,000 | 2,813,000 | 3,964,000 |
| Pretax margin | 48.20% | 57.66% | 41.39% | -199.82% | 7.24% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $4,055,000K ÷ $8,412,000K
= 48.20%
The pretax margin of Diamondback Energy Inc has displayed variability over the past five years, ranging from negative territory to relatively high levels. In 2023, the pretax margin decreased to 50.50% from 59.48% in 2022, indicating a slight decline in the company's profitability before taxes. However, compared to 2021 when the pretax margin was 42.77%, there has been an improvement in profitability in 2023. The significant negative pretax margin of -205.33% in 2020 suggests that the company incurred substantial losses before taxes that year. In 2019, the pretax margin was at a more moderate level of 9.13%.
Overall, the trend in pretax margin for Diamondback Energy Inc has shown fluctuations, with a notable improvement in profitability in 2023 compared to the prior year, but with a significant loss-making year in 2020 impacting the overall performance. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023