Viper Energy Ut (VNOM)

Short-term

Turnover ratios

Based on the provided data on Viper Energy Ut's activity ratios, we can observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio for Viper Energy Ut was not available for 2020 and 2021.
- In 2022, the inventory turnover ratio was 6.04, indicating that the company turned over its inventory approximately 6 times during the year.
- The ratio significantly increased to 548.94 in 2023, suggesting a substantial improvement in inventory management efficiency.
- The inventory turnover ratio was not available for 2024.

2. Receivables Turnover:
- The receivables turnover ratio was not available for any of the years from 2020 to 2024, indicating that data on how many times the company collected its receivables annually is not provided.

3. Payables Turnover:
- The payables turnover ratio was not available for any of the years from 2020 to 2024, suggesting that details on how quickly the company paid its suppliers are not provided.

4. Working Capital Turnover:
- The working capital turnover ratio for Viper Energy Ut shows a decreasing trend over the years.
- In 2020, the ratio was 27.44, reflecting a relatively high level of efficiency in utilizing working capital for generating revenue.
- The ratio decreased to 5.82 in 2021, indicating a decline in the company's ability to generate sales from its working capital.
- There was a slight improvement in 2022 with a ratio of 8.96, although it was still lower than in 2020.
- In 2023 and 2024, the ratio continued to decline to 7.50 and 4.54, respectively, signaling potential inefficiencies in utilizing working capital to drive revenue growth.

In summary, while Viper Energy Ut's inventory turnover improved significantly between 2022 and 2023, data on receivables turnover, payables turnover, and working capital turnover paint a mixed picture of the company's efficiency in managing its operational activities during the years analyzed.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Viper Energy Ut as follows:

1. Days of Inventory on Hand (DOH):
- On December 31, 2022, the company had 60.40 days of inventory on hand, indicating that it took approximately 60 days to sell its inventory.
- On December 31, 2023, the DOH decreased significantly to 0.66 days, suggesting a swift turnover of inventory within less than a day.

2. Days of Sales Outstanding (DSO):
- Throughout the years 2020 to 2024, the Days of Sales Outstanding (DSO) data was not provided, implying that we do not have visibility into the average number of days it takes for the company to collect its accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the Number of Days of Payables data was not provided for the years 2020 through 2024, making it challenging to assess the average number of days the company takes to pay its vendors or suppliers.

In conclusion, based on the available data, we can see a notable improvement in the efficiency of inventory management from 2022 to 2023, with a substantial reduction in the Days of Inventory on Hand. However, further insights could be gained by analyzing the Days of Sales Outstanding and Number of Days of Payables ratios to understand the company's overall liquidity and working capital management.

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Long-term

The analysis of Viper Energy Ut's long-term activity ratios based on the provided data shows an improvement in both the Fixed Asset Turnover and Total Asset Turnover ratios over the period from December 31, 2020, to December 31, 2024.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue.
- In December 2020, the ratio was 0.10, indicating that for each dollar of fixed assets, the company generated $0.10 of revenue.
- The ratio increased to 0.17 by December 2021, reflecting improved efficiency in utilizing fixed assets.
- Further improvement was seen in December 2022 when the ratio reached 0.31, suggesting a significant increase in revenue generated per dollar of fixed assets.
- Unfortunately, data for December 2023 and December 2024 is unavailable.

2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how efficiently the company is using all its assets to generate sales.
- Similar to the Fixed Asset Turnover, the Total Asset Turnover also showed an increasing trend over the period.
- Starting at 0.10 in December 2020, the ratio improved to 0.17 by December 2021, indicating a better utilization of total assets to generate revenue.
- By December 2022, the ratio increased further to 0.30, signaling a significant enhancement in asset utilization efficiency.
- However, there was a slight decline in the ratio to 0.21 by December 2023, possibly due to changes in the asset base or revenue generation.
- The ratio continued to decline to 0.17 by December 2024, suggesting a potential decline in the effectiveness of utilizing total assets to generate sales.

Overall, the trend indicates an improvement in asset turnover ratios until December 2022, where the company significantly enhanced its efficiency in utilizing fixed and total assets to generate revenue. However, the decrease in the Total Asset Turnover ratio in 2023 and 2024 might require further analysis to understand the underlying factors affecting asset utilization during those periods.