Diamondback Energy Inc (FANG)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,570,000 | 4,621,000 | 4,895,000 | 5,873,000 | 6,508,000 | 6,563,000 | 6,113,000 | 5,090,000 | 4,001,000 | 1,944,000 | -476,000 | -4,103,000 | -5,476,000 | -5,114,000 | -3,509,000 | -426,000 | 695,000 | 1,274,000 | 1,193,000 | 1,063,000 |
| Long-term debt | US$ in thousands | 6,641,000 | 6,230,000 | 6,543,000 | 6,950,000 | 6,238,000 | 5,347,000 | 5,401,000 | 5,803,000 | 6,642,000 | 6,925,000 | 7,360,000 | 7,465,000 | 5,624,000 | 5,656,000 | 5,952,000 | 5,677,000 | 5,371,000 | 4,761,000 | 4,472,000 | 4,670,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 10,926,000 | 10,673,000 | 8,794,000 | 9,552,000 | 10,714,000 | 12,826,000 | 13,249,000 | 14,050,000 | 14,004,000 | 13,773,000 |
| Return on total capital | 19.64% | 20.53% | 22.15% | 26.20% | 30.63% | 34.20% | 32.66% | 27.45% | 21.36% | 10.56% | -2.60% | -22.62% | -37.98% | -33.63% | -21.05% | -2.30% | 3.73% | 6.77% | 6.46% | 5.76% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,570,000K ÷ ($6,641,000K + $16,625,000K)
= 19.64%
Diamondback Energy Inc's return on total capital has shown a declining trend over the past quarters, starting at a high of 34.57% in Q3 2022 and decreasing to 19.90% in Q4 2023. Despite the decrease, the company has generally maintained double-digit returns, indicating efficient utilization of its capital resources. The drop in return could be attributed to various factors such as changes in operating efficiency, profitability, or changes in the capital structure. Further analysis is recommended to understand the drivers behind the fluctuations and to assess the company's ability to generate returns on its total capital effectively.
Peer comparison
Dec 31, 2023