Diamondback Energy Inc (FANG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.78 | 1.74 | 1.75 | 1.89 | 2.00 |
Based on the provided data, Diamondback Energy Inc has consistently maintained a strong solvency position over the years.
1. Debt-to-assets ratio: The company has a debt-to-assets ratio of 0.00 for each year from 2020 to 2024. This indicates that Diamondback Energy Inc has not relied heavily on debt to finance its assets, which is a positive sign of financial stability.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also been 0.00 for all the years in consideration. This suggests that the company's capital structure has been predominantly equity-funded rather than debt-funded.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 for each year, indicating that the company's reliance on debt to finance its operations is minimal compared to its equity.
4. Financial leverage ratio: The financial leverage ratio has been declining over the years, from 2.00 in 2020 to 1.78 in 2024. A decreasing trend in the financial leverage ratio suggests that Diamondback Energy Inc has been gradually reducing its dependence on debt financing relative to equity.
In conclusion, based on the solvency ratios analyzed, Diamondback Energy Inc appears to have a strong financial position with low debt levels and a healthy capital structure. This indicates that the company has been managing its financial leverage effectively and has a stable financial foundation for future growth and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 16.63 | 25.00 | 37.70 | 15.58 | -28.30 |
The interest coverage ratio for Diamondback Energy Inc has shown significant fluctuations over the past few years. In December 31, 2020, the company had an interest coverage ratio of -28.30, indicating that its operating income was insufficient to cover its interest expenses, which could be a cause for concern.
However, there has been a notable improvement in the interest coverage ratio since then. As of December 31, 2021, the ratio improved to 15.58, suggesting that the company's ability to meet its interest obligations has strengthened. This positive trend continued into December 31, 2022, with an interest coverage ratio of 37.70, indicating a very healthy financial position in terms of covering interest expenses.
In the following years, the interest coverage ratio remained relatively strong, with values of 25.00 on December 31, 2023, and 16.63 on December 31, 2024. Overall, the improving trend in the interest coverage ratio reflects Diamondback Energy Inc's increasing ability to meet its interest payments, which is a positive indicator of the company's financial health and stability.