Diamondback Energy Inc (FANG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,230,000 | 5,719,000 | 3,012,000 | -5,424,000 | 459,000 |
| Long-term debt | US$ in thousands | 6,641,000 | 6,238,000 | 6,642,000 | 5,624,000 | 5,371,000 |
| Total stockholders’ equity | US$ in thousands | 16,625,000 | 15,009,000 | 12,088,000 | 8,794,000 | 13,249,000 |
| Return on total capital | 18.18% | 26.92% | 16.08% | -37.62% | 2.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,230,000K ÷ ($6,641,000K + $16,625,000K)
= 18.18%
Diamondback Energy Inc's return on total capital has fluctuated over the past five years, ranging from a low of 3.66% in 2020 to a high of 31.04% in 2022. The company's return on total capital was 19.90% in 2023, indicating profitability relative to the total capital employed. It is important to note the upward trend in the return on total capital from 2019 to 2022, which suggests an improvement in the company's efficiency in generating profits from its capital investments. However, the decrease in 2023 compared to the previous year may require further analysis to understand the factors driving this change and assess the sustainability of the company's profitability going forward.
Peer comparison
Dec 31, 2023