Diamondback Energy Inc (FANG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	37,736,000	37,429,000	17,448,000	16,950,000	16,625,000	16,280,000	15,554,000	15,464,000	15,009,000	13,843,000	13,316,000	12,743,000	12,088,000	11,483,000	8,794,000	10,673,000	8,794,000	9,552,000	10,714,000	12,826,000
ROE		8.85%	8.61%	19.94%	18.87%	18.91%	19.59%	22.16%	27.75%	29.04%	31.80%	29.09%	21.82%	18.38%	3.76%	-15.06%	-37.71%	-51.36%	-44.65%	-25.98%	-0.33%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,338,000K ÷ $37,736,000K
= 8.85%

Diamondback Energy Inc's return on equity (ROE) experienced a volatile trend over the past few years. Starting from a negative ROE in March 2020 (-0.33%), the company's ROE deteriorated even further reaching its lowest point of -51.36% in December 2020. However, improvements began to show in the following periods, with ROE turning positive in September 2021 at 3.76% and steadily increasing to 29.09% by June 2022.

The peak ROE of 31.80% in September 2022 was followed by a slight decline in the subsequent quarters. Nonetheless, the company managed to maintain relatively healthy ROE levels above 18% from March 2023 to June 2024. In the most recent reporting period of December 2024, Diamondback Energy Inc's ROE stood at 8.85%.

Overall, the upward trend in ROE from negative values to double-digit positive percentages indicates an improvement in the company's profitability and efficiency in generating returns for its shareholders. However, it is essential for investors and stakeholders to monitor future developments to ensure the sustainability of Diamondback Energy Inc's profitability performance.