Viper Energy Ut (VNOM)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	798,865	630,269	-56,372	368,752	129,221
Revenue	US$ in thousands	859,747	826,788	865,767	504,297	249,566
Gross profit margin		92.92%	76.23%	-6.51%	73.12%	51.78%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $798,865K ÷ $859,747K
= 92.92%

The gross profit margin of Viper Energy Ut has exhibited varying trends over the years. It increased significantly from 51.78% as of December 31, 2020, to 73.12% as of December 31, 2021, reflecting improved operational efficiency and effective cost management. However, there was a sharp decline to -6.51% as of December 31, 2022, indicating that the company may have experienced a substantial increase in the cost of goods sold relative to revenue during that period.

Subsequently, the gross profit margin recovered and stood at 76.23% as of December 31, 2023, suggesting that the company successfully addressed the challenges faced in the previous year. The most recent data point, as of December 31, 2024, shows a significant improvement with a gross profit margin of 92.92%, signaling robust profitability and efficient production processes.

Overall, the trend in Viper Energy Ut's gross profit margin indicates a mix of strengths and challenges in its operations, with the company showing the ability to adapt and recover from adverse conditions to achieve strong profitability in recent periods.