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.