Viper Energy Ut (VNOM)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 859,747 | 826,788 | 865,767 | 504,297 | 249,566 |
Total current assets | US$ in thousands | 238,044 | 143,517 | 118,620 | 111,149 | 53,994 |
Total current liabilities | US$ in thousands | 48,694 | 33,256 | 21,946 | 24,466 | 44,898 |
Working capital turnover | 4.54 | 7.50 | 8.96 | 5.82 | 27.44 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $859,747K ÷ ($238,044K – $48,694K)
= 4.54
The working capital turnover for Viper Energy Ut has shown a significant decline from 27.44 in December 31, 2020, to 4.54 in December 31, 2024. This indicates that the company's efficiency in utilizing its working capital to generate sales has decreased over the years. A higher working capital turnover is generally considered favorable as it suggests that the company is efficiently managing its working capital to support its business operations. However, the decreasing trend in Viper Energy Ut's working capital turnover may raise concerns regarding its ability to effectively convert working capital into revenue. It is essential for the company to address this decline and focus on optimizing its working capital management strategies to improve overall operational efficiency.
Peer comparison
Dec 31, 2024