Viper Energy Ut (VNOM)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	670,976	736,825	394,130	72,758	212,616
Revenue	US$ in thousands	827,697	866,467	504,917	250,626	298,283
Gross profit margin		81.07%	85.04%	78.06%	29.03%	71.28%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $670,976K ÷ $827,697K
= 81.07%

The gross profit margin of Viper Energy Ut has exhibited significant variability over the past five years. In 2023, the gross profit margin stood at 81.07%, reflecting a slight decrease from the previous year's ratio of 85.04%. Despite this decline, the company maintained a relatively high gross profit margin, indicating efficient cost management and strong pricing strategies. In contrast, the gross profit margin in 2020 was notably lower at 29.03%, suggestive of potential challenges or inefficiencies in production or cost control during that period. Overall, the fluctuating trend in gross profit margin highlights the importance of monitoring operational efficiencies and cost structures to sustain profitability in the energy sector.