Viper Energy Ut (VNOM)

Short-term

Turnover ratios

The activity ratios of Viper Energy Ut provide insights into the efficiency of the company's operations in managing its assets and liabilities.

1. Inventory Turnover:
- The inventory turnover ratio for Viper Energy Ut has shown a significant increase over the years, reaching 437.77 in 2023 from 13.90 in 2022. This indicates that the company is selling its inventory at a much faster rate, which is a positive sign of efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio has also increased steadily over the years, with a notable jump to 1,018.08 in 2023 from 10.61 in 2022. This implies that Viper Energy Ut is collecting its receivables much more quickly, indicating effective credit management and a lower risk of bad debts.

3. Payables Turnover:
- The payables turnover ratio, although not available for all years, shows a fluctuating trend. In 2022, the ratio was 114.83, and in 2021, it increased significantly to 1,605.61 before decreasing again in 2020 to 4,136.47. This suggests that the company is managing its trade payables differently each year, possibly to optimize cash flows or vendor relationships.

4. Working Capital Turnover:
- The working capital turnover ratio for Viper Energy Ut has varied over the years, peaking at 27.55 in 2020 and standing at 7.51 in 2023. A higher working capital turnover ratio generally indicates that the company is effectively utilizing its working capital to generate sales.

Overall, based on the activity ratios analyzed, Viper Energy Ut has shown improvements in managing its assets and liabilities efficiently, resulting in better turnover rates and optimized working capital utilization over the years.

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Average number of days

Days of inventory on hand (DOH) for Viper Energy Ut have shown a significant improvement over the years, decreasing from 26.26 days in 2022 to just 0.83 days in 2023. This suggests that the company is efficiently managing its inventory levels, turning over its inventory quickly, and potentially reducing carrying costs.

Days of sales outstanding (DSO) have also improved consistently, decreasing from 71.08 days in 2019 to 0.36 days in 2023. This indicates that the company is collecting its accounts receivable faster, which can improve cash flow and reduce the risk of bad debts.

The number of days of payables was not available for every year, but for the years reported, Viper Energy Ut has been consistently increasing the number of days it takes to pay its suppliers. This can be a strategic move to effectively manage working capital by leveraging the company's cash position.

Overall, Viper Energy Ut's activity ratios show a positive trend towards efficient management of inventory, collection of receivables, and payment to suppliers, which can contribute to improved liquidity and financial health.

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Long-term

The long-term activity ratios of Viper Energy Ut have shown fluctuations over the past five years.

The fixed asset turnover ratio, which measures how efficiently the company is utilizing its fixed assets to generate revenue, has varied from 0.10 to 0.32. This ratio indicates that for every dollar invested in fixed assets, the company generated between $0.10 and $0.32 in sales. The decreasing trend from 2022 to 2023 suggests a potential decrease in the efficiency of using fixed assets to generate revenue.

On the other hand, the total asset turnover ratio, which reflects the company's efficiency in using all assets to generate revenue, has ranged from 0.11 to 0.30. This ratio indicates that for every dollar of assets, the company generated between $0.11 and $0.30 in sales. The fluctuations in this ratio also show some variability in how efficiently the company is utilizing all assets to generate revenue.

Overall, based on the data provided, Viper Energy Ut's long-term activity ratios indicate some fluctuations, with the fixed asset turnover ratio exhibiting a decreasing trend in recent years, while the total asset turnover ratio has shown variability. Further analysis and comparison with industry benchmarks may provide more insight into the company's long-term asset efficiency.