Viper Energy Ut (VNOM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	620,219	680,482	361,572	52,914	193,540
Total assets	US$ in thousands	3,974,090	2,920,370	3,034,020	2,461,380	2,785,630
Operating ROA		15.61%	23.30%	11.92%	2.15%	6.95%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $620,219K ÷ $3,974,090K
= 15.61%

Viper Energy Ut's operating return on assets (operating ROA) fluctuated over the past five years, ranging from a low of 2.15% in 2020 to a high of 23.30% in 2022. The operating ROA measures the company's ability to generate profit from its operational assets.

The significant increase in operating ROA from 2020 to 2022 indicates an improvement in the company's operational efficiency and profitability. However, the decline in operating ROA in 2023 from the previous year might suggest a potential decrease in profitability or a less efficient use of assets.

Overall, Viper Energy Ut's operating ROA has shown mixed performance over the years, indicating the need for further analysis to understand the factors driving these fluctuations and to assess the company's operational effectiveness and asset utilization.