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.
Peer comparison
Dec 31, 2023