Viper Energy Ut (VNOM)

Short-term

Turnover ratios

Based on the activity ratios provided for Viper Energy Ut, we can analyze the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio reflects how many times a company's inventory is sold and replaced over a period. Viper Energy Ut had a significant increase in inventory turnover from March 31, 2020 (139.37) to June 30, 2022 (159.57), indicating efficient management of inventory. However, there was a decrease in the ratio to 19.02 by December 31, 2022, and a subsequent significant increase to 548.94 by December 31, 2023.

2. Receivables Turnover:
- The receivables turnover ratio shows how efficiently a company collects payments from its customers. The absence of data for this ratio indicates a lack of insight into Viper Energy Ut's accounts receivable management.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. The lack of data for this ratio suggests limited information about Viper Energy Ut's payables turnover efficiency.

4. Working Capital Turnover:
- The working capital turnover ratio illustrates how effectively a company utilizes its working capital to generate sales. Viper Energy Ut experienced fluctuations in this ratio over the reporting periods. Notable changes include an increase from 5.72 on March 31, 2020, to 27.44 on December 31, 2020, followed by varying values in subsequent periods, indicating changes in working capital efficiency.

Overall, while Viper Energy Ut demonstrates strong inventory turnover efficiency and some variability in working capital turnover, the absence of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's complete activity efficiency.

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Average number of days

The activity ratios of Viper Energy Ut provide insights into how efficiently the company manages its working capital and operations.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows the number of days it takes for the company to sell its inventory. A decrease in DOH indicates faster inventory turnover, which may signify efficient inventory management.
- In the latest available data, Viper Energy Ut's DOH decreased from 19.19 days in December 2022 to 0.66 days in December 2023, suggesting a significant improvement in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect revenue from sales. A lower DSO is generally favorable as it indicates quicker collection of receivables.
- The data provided does not contain any specific DSO values, indicating a lack of information to analyze Viper Energy Ut's collection efficiency.

3. Number of Days of Payables:
- This ratio demonstrates how long the company takes to pay its suppliers. Extending the payment period can help improve cash flow but may strain relationships with suppliers if not managed properly.
- The data does not include any information on the number of days of payables, making it challenging to assess Viper Energy Ut’s payment practices.

In summary, Viper Energy Ut's inventory management seems to have improved significantly based on the available DOH data. However, without information on DSO and payables, a comprehensive analysis of the company's overall efficiency in managing its working capital cannot be performed.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. For Viper Energy Ut, we observe a decreasing trend in this ratio from March 2020 (0.12) to March 2023 (0.29), reflecting a gradual improvement in the efficiency of utilizing fixed assets. However, the ratio remains steady at around 0.29-0.31 from March 2023 to March 2024. This suggests that the company has been able to generate more revenue relative to its fixed assets over time.

On the other hand, the Total Asset Turnover ratio assesses how effectively a company utilizes all its assets to generate sales. Viper Energy Ut demonstrates a fluctuating pattern in this ratio from March 2020 (0.12) to March 2024 (0.22), with peaks and troughs observed throughout the period. The ratio generally improves from 0.10 in March 2020 to around 0.28 in September 2022, indicating an enhancement in asset utilization for generating sales.

Overall, these long-term activity ratios illustrate Viper Energy Ut's evolving ability to efficiently generate revenue in relation to its fixed and total assets. The company's enhanced operational efficiency as indicated by the improving ratios suggests positive trends in asset utilization over time.