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.