Viper Energy Ut (VNOM)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 437.77 | — | — | 98.77 | 13.90 | 26.94 | 119.55 | — | — | — | — | — | — | — | — | 122.53 | — |
| Receivables turnover | — | — | — | 1,018.08 | — | — | 10.04 | 10.61 | 8.80 | 6.00 | 6.19 | 7.36 | 8.81 | 8.34 | 6.43 | 7.78 | 8.32 | 8.59 | 8.31 | 5.13 |
| Payables turnover | — | — | — | — | — | — | 307.41 | 114.83 | 7,426.12 | 13,416.22 | 8,074.57 | 1,605.61 | 864.67 | 4,598.51 | 8,460.33 | 4,136.47 | 1,130.53 | 9,210.09 | 293.46 | — |
| Working capital turnover | 3.03 | 5.22 | 6.40 | 7.51 | 3.85 | 9.71 | 8.05 | 8.96 | 8.35 | 6.50 | 6.12 | 5.82 | 8.35 | 17.69 | — | 27.55 | 25.25 | — | 5.73 | 5.04 |
The activity ratios of Viper Energy Ut provide insights into the efficiency of the company's operations.
1. Inventory turnover: This ratio measures how many times a company's inventory is sold and replaced during a period. Viper Energy had inconsistent inventory turnover rates, with significant fluctuations over the periods reported. The company showed a high inventory turnover rate of 437.77 in December 2023, indicating efficient management of its inventory levels.
2. Receivables turnover: This ratio reflects how efficiently a company is collecting cash from its customers. Viper Energy's receivables turnover varied during the periods examined, with the highest turnover of 1,018.08 reported in December 2023. This indicates that the company was collecting cash from customers more frequently in that period.
3. Payables turnover: This ratio measures how efficiently a company pays its suppliers. Viper Energy's payables turnover also exhibited variability, with the highest turnover of 13,416.22 in June 2022. A high payables turnover can indicate that the company is managing its payables effectively by paying suppliers promptly.
4. Working capital turnover: This ratio demonstrates how efficiently a company is utilizing its working capital to generate sales. Viper Energy's working capital turnover fluctuated over the periods analyzed, with the highest turnover of 27.55 in December 2020. A higher working capital turnover indicates that the company is generating more revenue per unit of working capital employed.
Overall, Viper Energy's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the reported periods. It is important for the company to closely monitor and manage these ratios to optimize operational efficiency and financial performance.
Average number of days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.83 | — | — | 3.70 | 26.26 | 13.55 | 3.05 | — | — | — | — | — | — | — | — | 2.98 | — |
| Days of sales outstanding (DSO) | days | — | — | — | 0.36 | — | — | 36.36 | 34.40 | 41.50 | 60.80 | 58.95 | 49.57 | 41.41 | 43.76 | 56.72 | 46.91 | 43.89 | 42.50 | 43.93 | 71.08 |
| Number of days of payables | days | — | — | — | — | — | — | 1.19 | 3.18 | 0.05 | 0.03 | 0.05 | 0.23 | 0.42 | 0.08 | 0.04 | 0.09 | 0.32 | 0.04 | 1.24 | — |
Days of inventory on hand (DOH) measures the average number of days a company holds inventory before selling it. Viper Energy Ut's inventory management has shown significant fluctuation over the periods analyzed, ranging from as low as 0.83 days to as high as 26.26 days. A decrease in DOH indicates efficient inventory turnover, while an increase may suggest inefficiencies or excessive inventory levels.
Days of sales outstanding (DSO) reveals the average number of days it takes for Viper Energy Ut to collect revenue after a sale is made. The trend in DSO has been somewhat erratic, with values varying between 0.36 days and 71.08 days. Lower DSO values are preferable as they signify quicker cash conversion from sales, while higher values could indicate potential issues with credit policies or collections.
Number of days of payables measures how long a company takes to pay its suppliers. Viper Energy Ut's payables management has been relatively stable, with values generally under 3 days. A low number of days of payables suggests efficient utilization of trade credit, aiding cash flow management.
Overall, Viper Energy Ut should aim to optimize its inventory turnover, expedite the collection of receivables, and maintain disciplined payables practices to enhance liquidity and working capital efficiency.
Long-term
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.22 | 0.25 | 0.23 | 0.22 | 0.30 | 0.27 | 0.29 | 0.32 | 0.29 | 0.26 | 0.21 | 0.17 | 0.18 | 0.15 | 0.11 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 |
| Total asset turnover | 0.20 | 0.24 | 0.22 | 0.21 | 0.26 | 0.25 | 0.28 | 0.30 | 0.28 | 0.25 | 0.20 | 0.17 | 0.17 | 0.14 | 0.11 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 |
The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. For Viper Energy Ut, the fixed asset turnover ratio has been fluctuating over the periods presented, ranging from 0.10 to 0.32. The ratio indicates that, on average, for each dollar invested in fixed assets, Viper Energy Ut is generating sales worth between $0.10 and $0.32.
On the other hand, the total asset turnover ratio evaluates how well a company is utilizing all its assets to generate revenue. Viper Energy Ut's total asset turnover ratio has also varied, ranging from 0.10 to 0.30. This suggests that the company is generating sales amounting to between $0.10 and $0.30 for every dollar invested in total assets.
In assessing these ratios, it appears that Viper Energy Ut has experienced some fluctuations in its efficiency in generating sales from both fixed and total assets over the periods specified. Further analysis and comparison with industry benchmarks could provide additional insights into the company's long-term activity performance.