Viper Energy Ut (VNOM)

Working capital turnover

		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	Dec 31, 2019
Revenue (ttm)	US$ in thousands	836,400	920,052	864,131	827,697	826,610	754,987	833,522	866,467	828,629	735,016	609,844	504,917	415,453	350,391	268,910	250,626	267,014	275,860	315,385	298,283
Total current assets	US$ in thousands	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	72,664
Total current liabilities	US$ in thousands	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	13,432
Working capital turnover		3.03	5.22	6.40	7.51	3.85	9.71	8.05	8.96	8.35	6.50	6.12	5.82	8.35	17.69	—	27.55	25.25	—	5.73	5.04

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $836,400K ÷ ($320,180K – $44,208K)
= 3.03

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.

Looking at the trend of Viper Energy Ut's working capital turnover ratio over the past few quarters, we can observe fluctuation with some significant variations. In the latest quarter, the ratio stood at 3.03, indicating a decrease compared to the previous quarter's level of 5.22.

The company experienced a peak in efficiency in utilizing its working capital in the quarter ending in March 2021 with a ratio of 27.55, showcasing a significant improvement in managing its working capital to generate sales. This high ratio suggests that during that period, Viper Energy Ut was effectively converting its working capital into revenue.

However, the trend of the working capital turnover ratios appears to be inconsistent, with fluctuations and no clear pattern evident from the provided data. It is essential for Viper Energy Ut to monitor and manage its working capital efficiently to ensure optimal operational performance and financial health. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management efficiency.