Diamondback Energy Inc (FANG)

Financial leverage 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
Total assets	US$ in thousands	29,001,000	28,049,000	27,587,000	27,589,000	26,209,000	23,843,000	23,448,000	23,331,000	22,898,000	22,639,000	22,898,000	21,996,000	17,619,000	18,760,000	20,337,000	23,386,000	23,531,000	23,553,000	23,531,000	23,531,000
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
Financial leverage ratio		1.74	1.72	1.77	1.78	1.75	1.72	1.76	1.83	1.89	1.97	2.10	2.06	2.00	1.96	1.90	1.82	1.78	1.68	1.68	1.71

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,001,000K ÷ $16,625,000K
= 1.74

The financial leverage ratio for Diamondback Energy Inc has shown relatively consistent levels over the past eight quarters, ranging from 1.72 to 1.83. This ratio measures the company's reliance on debt financing to support its operations and growth.

With a financial leverage ratio consistently above 1, Diamondback Energy Inc has been using more debt than equity to finance its assets. A ratio above 1 indicates that the company has more debt relative to its equity, which can increase financial risk due to the obligations associated with debt repayment.

The slight fluctuations in the financial leverage ratio over the quarters suggest that Diamondback Energy Inc has been managing its debt levels effectively, maintaining a balance between debt and equity financing. However, the ratio hovering around the 1.75 range indicates a moderate level of financial leverage that investors and creditors should monitor closely.

Overall, the trend of Diamondback Energy Inc's financial leverage ratio suggests that the company has been judiciously using debt to fund its operations and investments, but it also highlights the importance of monitoring debt levels to ensure financial stability and sustainability in the long term.