Diamondback Energy Inc (FANG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,143,000 | 4,386,000 | 2,182,000 | -4,517,000 | 240,000 |
| Total assets | US$ in thousands | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 | 23,531,000 |
| ROA | 10.84% | 16.73% | 9.53% | -25.64% | 1.02% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,143,000K ÷ $29,001,000K
= 10.84%
Diamondback Energy Inc's return on assets (ROA) has fluctuated over the past five years, as shown in the table. In 2023, the ROA was 10.76%, indicating that the company generated a return of 10.76% on its total assets. This was a decrease from the previous year's ROA of 16.73%.
Looking back further, in 2021, the ROA stood at 9.53%, showing a slight improvement from the negative ROA of -25.64% in 2020. The significant negative ROA in 2020 suggests that the company faced challenges in generating profits from its assets that year.
However, in 2019, Diamondback Energy Inc had an ROA of 1.02%, reflecting a positive performance in utilizing its assets to generate profits.
Overall, the varying ROA figures over the years indicate fluctuations in the company's profitability relative to its asset base. Investors and analysts may closely monitor this metric to assess the efficiency and effectiveness of Diamondback Energy Inc in generating returns from its assets.
Peer comparison
Dec 31, 2023