Diamondback Energy Inc (FANG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,832,000 | 4,501,000 | 4,872,000 | 4,532,000 | 4,417,000 | 4,502,000 | 4,859,000 | 5,885,000 | 5,994,000 | 5,949,000 | 5,209,000 | 3,793,000 | 3,037,000 | 1,332,000 | -948,000 | -4,454,000 | -5,075,000 | -5,227,000 | -3,343,000 | 210,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 12.80% | 12.03% | 27.92% | 26.74% | 26.57% | 27.65% | 31.24% | 38.06% | 39.94% | 42.97% | 39.12% | 29.77% | 25.12% | 11.60% | -10.78% | -41.73% | -57.71% | -54.72% | -31.20% | 1.64% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,832,000K ÷ ($—K + $37,736,000K)
= 12.80%
Diamondback Energy Inc's return on total capital has shown a volatile trend over the given period. Starting from a low of -57.71% at the end of December 2020, the return steadily improved and reached 42.97% by the end of September 2022. Subsequently, the return fluctuated but generally remained positive, peaking at 42.97% in September 2022. However, there was a slight decrease in the return to 12.80% by the end of December 2024.
Overall, the company's return on total capital demonstrated a significant improvement from negative figures to positive levels, indicating a better utilization of capital and potentially more efficient operations in recent periods. Investors may view this positive trend favorably as it reflects the company's ability to generate higher returns on the capital employed. However, the fluctuations in the return highlight the importance of ongoing monitoring and analysis of the company's financial performance.
Peer comparison
Dec 31, 2024