Diamondback Energy Inc (FANG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,789,000 | 4,425,000 | 5,994,000 | 3,101,000 | -5,575,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 37,736,000 | 16,625,000 | 15,009,000 | 12,088,000 | 8,794,000 |
| Return on total capital | 12.69% | 26.62% | 39.94% | 25.65% | -63.40% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,789,000K ÷ ($—K + $37,736,000K)
= 12.69%
Diamondback Energy Inc's return on total capital has shown significant fluctuations over the past five years.
The company reported a negative return on total capital of -63.40% as of December 31, 2020, indicating that the company was not effectively utilizing its total capital to generate returns during that period.
However, there was a notable improvement in the subsequent years, with the return on total capital increasing to 25.65% as of December 31, 2021, and further rising to 39.94% as of December 31, 2022. These improvements signify that Diamondback Energy Inc was able to enhance its capital efficiency and generate better returns for its total capital during these years.
In 2023, the return on total capital slightly decreased to 26.62%, indicating a slight dip in the company's capital efficiency compared to the previous year.
By December 31, 2024, Diamondback Energy Inc's return on total capital decreased further to 12.69%. This decline suggests that the company may have faced challenges or experienced a decrease in profitability that impacted its ability to generate returns on its total capital efficiently.
Overall, Diamondback Energy Inc's return on total capital has shown volatility and varied performance, with periods of improvement and decline over the five-year period analyzed.
Peer comparison
Dec 31, 2024