Diamondback Energy Inc (FANG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 67,292,000 | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 |
| Total stockholders’ equity | US$ in thousands | 37,736,000 | 16,625,000 | 15,009,000 | 12,088,000 | 8,794,000 |
| Financial leverage ratio | 1.78 | 1.74 | 1.75 | 1.89 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $67,292,000K ÷ $37,736,000K
= 1.78
The financial leverage ratio of Diamondback Energy Inc has exhibited a gradual decline over the past five years. Starting at 2.00 on December 31, 2020, the ratio decreased to 1.89 by December 31, 2021, followed by further reductions to 1.75 on December 31, 2022, and 1.74 on December 31, 2023. However, there was a slight uptick to 1.78 by December 31, 2024. This generally decreasing trend indicates a potential improvement in the company's financial structure and suggests a lower reliance on debt financing compared to equity. It may also signal enhanced financial stability and a reduced risk of financial distress due to lower debt levels in relation to equity.
Peer comparison
Dec 31, 2024