Viper Energy Ut (VNOM)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	200,088	151,673	57,939	-192,304	46,281
Total assets	US$ in thousands	3,974,090	2,920,370	3,034,020	2,461,380	2,785,630
ROA		5.03%	5.19%	1.91%	-7.81%	1.66%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $200,088K ÷ $3,974,090K
= 5.03%

Viper Energy Ut's return on assets (ROA) has exhibited fluctuations over the past five years. The ROA was 5.03% in 2023, slightly lower than the 5.19% in 2022. This indicates that the company generated 5.03 cents of profit for every dollar of assets in 2023. The positive ROA values in 2023 and 2022 suggest that Viper Energy Ut efficiently utilized its assets to generate profit.

In 2021, the ROA decreased to 1.91% from 5.19% in 2022, which could indicate a decline in asset efficiency compared to the previous year. However, the company managed to recover from a negative ROA of -7.81% in 2020, indicating a significant improvement in asset utilization from the prior year.

Overall, Viper Energy Ut's ROA has shown variability, with fluctuations over the years. It is essential for the company to consistently monitor its asset management strategies to ensure optimal utilization and sustainable profitability.