Viper Energy Ut (VNOM)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	566,397	620,219	700	361,572	123,402
Revenue	US$ in thousands	859,747	826,788	865,767	504,297	249,566
Operating profit margin		65.88%	75.02%	0.08%	71.70%	49.45%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $566,397K ÷ $859,747K
= 65.88%

The operating profit margin of Viper Energy Ut has exhibited significant fluctuations over the years. In December 2020, the operating profit margin was 49.45%, indicating that the company generated 49.45 cents of operating profit for every dollar of sales. The margin then notably increased to 71.70% by December 2021, reflecting improved operational efficiency and profitability.

However, in December 2022, there was a drastic decline in the operating profit margin to a mere 0.08%, suggesting a significant decrease in profitability compared to the previous year. This sharp decline may raise concerns about the company's ability to manage its operating expenses effectively.

Subsequently, in December 2023, the operating profit margin surged to 75.02%, indicating a strong rebound in profitability and operational performance. The significant improvement in the operating profit margin suggests that the company successfully implemented strategies to enhance operational efficiency and optimize costs.

By December 2024, the operating profit margin slightly decreased to 65.88%, albeit remaining at a relatively high level. This indicates that Viper Energy Ut continues to maintain healthy profitability levels, although there was a slight dip compared to the previous year.

Overall, the analysis of Viper Energy Ut's operating profit margin reveals both volatility and resilience in the company's ability to generate profits from its core business operations over the specified years.