Diamondback Energy Inc (FANG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.22 | 0.24 | 0.25 | 0.24 | 0.22 | 0.23 | 0.25 | 0.29 | 0.31 | 0.32 | 0.34 | 0.32 | 0.30 | 0.29 | 0.24 | 0.23 | 0.20 | 0.19 | 0.20 |
| Debt-to-capital ratio | 0.29 | 0.28 | 0.30 | 0.31 | 0.29 | 0.28 | 0.29 | 0.31 | 0.35 | 0.38 | 0.40 | 0.41 | 0.39 | 0.37 | 0.36 | 0.31 | 0.29 | 0.25 | 0.24 | 0.25 |
| 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 |
| 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 |
The solvency ratios of Diamondback Energy Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a relatively stable trend, hovering around 0.23 to 0.25 over the past year, suggesting that roughly 23% to 25% of the company's assets are funded by debt. This indicates a conservative level of leverage.
The debt-to-capital ratio has also remained steady, ranging from 0.28 to 0.31, reflecting the proportion of the company's capital structure financed by debt. Similarly, the debt-to-equity ratio has shown consistency, staying in the range of 0.38 to 0.46, indicating the mix of debt and equity financing in the company's capital structure.
The financial leverage ratio, which highlights the company's reliance on debt financing, has shown a slight fluctuation from 1.72 to 1.83 over the past year. This suggests that Diamondback Energy has been managing its debt levels effectively, with a relatively moderate degree of leverage.
Overall, based on these solvency ratios, Diamondback Energy Inc appears to maintain a stable and prudent financial position with a balanced capital structure and manageable levels of debt.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 49.14 | 49.69 | 27.66 | 35.59 | 40.93 | 43.46 | 37.05 | 27.81 | 20.11 | 8.84 | -2.20 | -20.01 | -36.26 | -19.01 | -16.17 | -2.46 | 4.04 | 14.36 | 13.47 | 12.18 |
Diamondback Energy Inc's interest coverage ratio has exhibited a generally increasing trend over the past eight quarters, indicating the company's improving ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The Q4 2022 ratio of 26.76 was the lowest in the dataset, but there has been a consistent uptrend since then, reaching a peak of 44.89 in Q4 2022. This suggests that the company's earnings have been comfortably covering its interest obligations, with each dollar of interest expense being covered more than 26 times in the most recent quarter. The consistent improvement in the interest coverage ratio reflects Diamondback Energy's strengthening financial position and ability to meet its debt payment obligations easily.