Viper Energy Ut (VNOM)

Pretax margin

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	255,096	289,463	258,556	246,040	209,501	141,954	143,158	119,020	132,415	117,222	81,680	59,460	-8,204	-26,706	-53,120	-49,838	-19,602	-18,372	5,825	4,699
Revenue (ttm)	US$ in thousands	836,400	920,052	864,131	827,697	826,610	754,987	833,522	866,467	828,629	735,016	609,844	504,917	415,453	350,391	268,910	250,626	267,014	275,860	315,385	298,283
Pretax margin		30.50%	31.46%	29.92%	29.73%	25.34%	18.80%	17.18%	13.74%	15.98%	15.95%	13.39%	11.78%	-1.97%	-7.62%	-19.75%	-19.89%	-7.34%	-6.66%	1.85%	1.58%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $255,096K ÷ $836,400K
= 30.50%

The pretax margin of Viper Energy Ut has shown variability over the past few quarters, ranging from negative figures to positive percentages. In the latest quarter, ending September 30, 2024, the pretax margin stood at 30.50%, showing a strong improvement compared to the previous quarter's 31.46%. This increase suggests that the company was able to generate more profit before taxes for every dollar of revenue.

However, it's worth noting that the pretax margin has fluctuated significantly over the past few years, with a low of -19.89% in December 31, 2020, and a high of 31.46% in June 30, 2024. This variability may indicate fluctuations in the company's operating efficiency, cost management, or revenue generation during these periods.

Overall, the upward trend in the pretax margin in recent quarters reflects an improvement in Viper Energy Ut's profitability before accounting for taxes, although continued monitoring of the ratio will be necessary to assess the company's financial health and performance accurately.