Viper Energy Ut (VNOM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 81.07% | 85.04% | 78.06% | 29.03% | 71.28% |
| Operating profit margin | 74.93% | 78.54% | 71.61% | 21.11% | 64.88% |
| Pretax margin | 29.73% | 13.74% | 11.78% | -19.89% | 1.58% |
| Net profit margin | 24.17% | 17.50% | 11.47% | -76.73% | 15.52% |
The profitability ratios of Viper Energy Ut have shown significant variation over the past five years.
Gross profit margin, which represents the percentage of revenues retained after accounting for the cost of goods sold, has fluctuated but generally remained high, indicating an efficient cost management strategy.
Operating profit margin reflects the company's ability to control operating expenses relative to revenue. Despite some fluctuations, Viper Energy Ut has consistently maintained a strong operating profit margin, which suggests effective cost management.
Pretax margin, which indicates the proportion of revenues that ultimately translate into pre-tax profits, has shown a mix of positive and negative figures. This ratio is particularly sensitive to non-operating items and tax implications.
Net profit margin, representing the portion of revenues that ultimately convert into net income, has varied significantly over the years. The company experienced a notable decline in profitability in 2020, but it has shown improvement in subsequent years.
Overall, Viper Energy Ut's profitability ratios demonstrate a mix of positive and challenging trends. The company has generally maintained strong gross and operating profit margins, but fluctuations in pre-tax and net profit margins suggest potential volatility in earnings. It would be essential for Viper Energy Ut to continue monitoring and managing its cost structure and revenue streams to sustain and enhance profitability over time.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.61% | 23.30% | 11.92% | 2.15% | 6.95% |
| Return on assets (ROA) | 5.03% | 5.19% | 1.91% | -7.81% | 1.66% |
| Return on total capital | 29.08% | 98.53% | 16.19% | 2.84% | 8.86% |
| Return on equity (ROE) | 19.73% | 21.96% | 2.59% | -10.33% | 2.12% |
Viper Energy Ut's profitability ratios have shown mixed performance over the past five years.
Starting with Operating Return on Assets (Operating ROA), the company's performance has fluctuated, with a significant increase in 2022 followed by a decrease in 2023. This ratio indicates the company's ability to generate profits from its assets before interest and taxes. Viper Energy Ut's Operating ROA has been relatively healthy, ranging from 2.15% to 23.30% during this period.
Next, looking at Return on Assets (ROA), this ratio measures the company's overall profitability in relation to its total assets. Viper Energy Ut's ROA has also varied, with negative performance in 2020 followed by positive returns in subsequent years. The company's ROA has ranged from -7.81% to 5.19% over the past five years.
Moving on to Return on Total Capital, this ratio indicates the return generated from all invested capital, including both equity and debt. Viper Energy Ut has experienced significant fluctuations in this ratio, with a remarkable leap in 2022 followed by a decrease in 2023. The company's Return on Total Capital has ranged from 2.84% to 98.53% during the period under consideration.
Lastly, focusing on Return on Equity (ROE), which measures the return generated on shareholders' equity, Viper Energy Ut has seen improvements in this ratio over the years. The company's ROE has shown positive results, with the lowest point in 2020 and the highest in 2022. Viper Energy Ut's ROE has ranged from -10.33% to 21.96% during the past five years.
Overall, while Viper Energy Ut has demonstrated varying levels of profitability over the years, the company's performance has shown resilience and improvement in some key areas. It is important for investors and stakeholders to closely monitor these profitability ratios to assess the company's financial health and performance over time.