Diamondback Energy Inc (FANG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 29,001,000 | 26,209,000 | 22,898,000 | 17,619,000 | 23,531,000 |
| Total stockholders’ equity | US$ in thousands | 16,625,000 | 15,009,000 | 12,088,000 | 8,794,000 | 13,249,000 |
| Financial leverage ratio | 1.74 | 1.75 | 1.89 | 2.00 | 1.78 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,001,000K ÷ $16,625,000K
= 1.74
The financial leverage ratio of Diamondback Energy Inc has been decreasing gradually over the past five years. The ratio decreased from 1.78 in 2019 to 1.74 in 2023, indicating a slightly lower level of financial leverage. This may suggest that the company has been able to reduce its reliance on debt financing relative to its equity capital. A lower financial leverage ratio generally indicates a lower level of financial risk as the company has less debt in its capital structure. However, it is essential to consider the industry norms and overall financial health of the company before drawing definitive conclusions about the impact of this trend on Diamondback Energy Inc.
Peer comparison
Dec 31, 2023