Viper Energy Ut (VNOM)

Working capital 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
Total current assets	US$ in thousands	143,517	118,620	111,149	53,994	72,664
Total current liabilities	US$ in thousands	33,256	21,946	24,466	44,898	13,432
Working capital turnover		7.51	8.96	5.82	27.55	5.04

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $827,697K ÷ ($143,517K – $33,256K)
= 7.51

The working capital turnover ratio for Viper Energy Ut has fluctuated over the past five years. The ratio measures how efficiently the company utilizes its working capital to generate revenue.

In 2023, the working capital turnover was 7.51 times, indicating that the company was able to generate $7.51 of revenue for every dollar of working capital invested. This ratio decreased from 8.96 in 2022, suggesting a slight decline in the efficiency of the company's working capital utilization.

In 2021, the ratio was 5.82, showing a lower efficiency compared to the previous years. However, there was a significant improvement in 2020, with a working capital turnover of 27.55, indicating that the company generated a high level of revenue relative to its working capital investment.

The working capital turnover ratio dropped back to 5.04 in 2019, reflecting a decrease in efficiency compared to the peak in 2020. Overall, while the ratio has shown variability over the years, Viper Energy Ut has demonstrated the ability to efficiently use its working capital to generate revenue, with fluctuations possibly influenced by changes in the company's operating environment or strategies.