Diamondback Energy Inc (FANG)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.40 | 0.38 | 0.42 | 0.45 | 0.42 | 0.39 | 0.41 | 0.46 | 0.55 | 0.60 | 0.67 | 0.70 | 0.64 | 0.59 | 0.56 | 0.44 | 0.41 | 0.34 | 0.32 | 0.34 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,641,000K ÷ $16,625,000K
= 0.40
The debt-to-equity ratio of Diamondback Energy Inc has shown some fluctuations over the past eight quarters, ranging from 0.38 to 0.46. The company's debt-to-equity ratio indicates the proportion of debt and equity used to finance its assets and operations. A lower ratio typically suggests lower financial risk and indicates that the company relies less on debt financing.
In the most recent quarter Q4 2023, the debt-to-equity ratio increased to 0.40 from 0.38 in the previous quarter, Q3 2023, suggesting a slight increase in the company's debt relative to its equity. It is still lower than the ratio in Q1 2023 and Q4 2022, indicating that the company has successfully managed to keep its debt levels under control in recent quarters.
Overall, Diamondback Energy Inc's debt-to-equity ratio has shown some variability, but the company has maintained a relatively stable financial structure with a moderate level of debt compared to its equity. Investors and stakeholders may continue to monitor the trend in this ratio to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023