Diamondback Energy Inc (FANG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,641,000 | 6,238,000 | 6,642,000 | 5,624,000 | 5,371,000 |
| Total assets | US$ in thousands | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 | 23,531,000 |
| Debt-to-assets ratio | 0.23 | 0.24 | 0.29 | 0.32 | 0.23 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,641,000K ÷ $29,001,000K
= 0.23
The debt-to-assets ratio of Diamondback Energy Inc has shown a general trend of decrease over the past five years, decreasing from 0.33 in 2020 to 0.23 in 2019. This indicates that the company has been reducing its reliance on debt to finance its operations and investments.
In 2021, there was a slight increase in the ratio to 0.29, suggesting a temporary increase in the proportion of debt relative to the company's assets. However, it decreased again in 2022 to 0.24, and further to 0.23 in 2023, indicating a positive trend towards a stronger financial position with lower debt levels relative to its total assets.
Overall, the decreasing trend in the debt-to-assets ratio implies that Diamondback Energy Inc has been managing its debt levels effectively, which could potentially lead to lower financial risk and improved financial stability in the long term.
Peer comparison
Dec 31, 2023