Viper Energy Ut (VNOM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	827,697	866,467	504,917	250,626	298,283
Property, plant and equipment	US$ in thousands	3,768,320	2,750,270	2,920,120	2,405,050	2,547,670
Fixed asset turnover		0.22	0.32	0.17	0.10	0.12

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $827,697K ÷ $3,768,320K
= 0.22

The fixed asset turnover ratio for Viper Energy Ut has varied significantly over the last five years. In 2023, the ratio stands at 0.22, indicating that the company generated $0.22 in sales for every dollar invested in fixed assets during the year. This represents a decrease from the previous year, where the ratio was at 0.32.

The trend observed in the fixed asset turnover ratios over the years suggests fluctuations in the efficiency of utilizing fixed assets to generate revenue. The ratio was lowest in 2020 at 0.10, indicating that the company struggled to generate sales relative to its investment in fixed assets.

Overall, the declining trend from 2022 to 2023 raises concerns about the company's ability to efficiently utilize its fixed assets in driving revenue generation. Further analysis of the company's operational and investment strategies may be necessary to address potential inefficiencies and improve overall performance.