Diamondback Energy Inc (FANG)

Return on assets (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
Net income (ttm)	US$ in thousands	3,338,000	3,224,000	3,480,000	3,199,000	3,143,000	3,190,000	3,447,000	4,291,000	4,358,000	4,402,000	3,873,000	2,781,000	2,222,000	432,000	-1,324,000	-4,025,000	-4,517,000	-4,265,000	-2,784,000	-42,000
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
ROA		4.96%	4.90%	9.77%	10.77%	10.84%	11.37%	12.50%	15.55%	16.63%	18.46%	16.52%	11.92%	9.70%	1.91%	-7.51%	-18.30%	-25.64%	-22.73%	-13.69%	-0.18%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $3,338,000K ÷ $67,292,000K
= 4.96%

The return on assets (ROA) for Diamondback Energy Inc has shown varying trends over the reported periods. From March 31, 2020, to September 30, 2021, the ROA was negative, indicating that the company's net income generated from its assets was insufficient to cover its total assets. However, starting from December 31, 2021, the ROA turned positive, reflecting an improvement in the company's profitability relative to its asset base.

The ROA steadily increased from September 30, 2021, to June 30, 2022, reaching a peak of 18.46%. Subsequently, the ROA fluctuated but generally remained positive, showcasing the company's ability to generate increasing returns from its assets.

Overall, the upward trend in ROA from December 31, 2021, to December 31, 2024, indicates that Diamondback Energy Inc has been more effective in utilizing its assets to generate profits and create value for its shareholders. This improvement in ROA suggests better operational efficiency and financial performance for the company during the analyzed period.