Viper Energy Ut (VNOM)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 857,231 833,288 918,177 863,299 826,788 825,642 754,001 832,552 865,767 827,982 734,448 609,231 504,297 414,675 349,427 267,952 249,566 265,913 275,067 314,791
Total current assets US$ in thousands 238,044 320,180 205,384 189,820 143,517 262,130 105,794 133,270 118,620 124,290 139,857 136,702 111,149 111,324 88,770 59,544 53,994 54,764 43,180 79,341
Total current liabilities US$ in thousands 48,694 44,208 29,091 54,885 33,256 47,491 28,079 29,771 21,946 25,081 26,842 37,104 24,466 61,565 68,960 62,855 44,898 44,189 46,406 24,309
Working capital turnover 4.53 3.02 5.21 6.40 7.50 3.85 9.70 8.04 8.96 8.35 6.50 6.12 5.82 8.33 17.64 — 27.44 25.15 — 5.72

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $857,231K ÷ ($238,044K – $48,694K)
= 4.53

The working capital turnover of Viper Energy Ut has shown fluctuations over the analyzed period. The ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio is generally better as it suggests that the company is efficiently managing its working capital.

From March 2020 to December 2020, there was a significant increase in the working capital turnover, indicating improved efficiency in utilizing working capital to generate sales. However, the ratio dropped in the subsequent periods, with volatile fluctuations noted throughout.

Overall, it seems that there has been inconsistency in how effectively Viper Energy Ut has been managing its working capital to generate revenue, as indicated by the varying turnover ratios observed during the analyzed period. Monitoring this ratio closely over time can provide insights into the company's operational efficiency and financial management practices.