Viper Energy Ut (VNOM)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	359,245	200,088	655,004	256,677	-193,413
Total assets	US$ in thousands	5,069,040	3,974,090	2,920,370	3,034,020	2,461,380
ROA		7.09%	5.03%	22.43%	8.46%	-7.86%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $359,245K ÷ $5,069,040K
= 7.09%

The return on assets (ROA) is a key financial metric used to evaluate a company's efficiency in generating profits relative to its total assets. Analyzing Viper Energy Ut's ROA over the past five years reveals fluctuations in its performance.

In December 2020, Viper Energy Ut's ROA was -7.86%, indicating a negative return on its assets, which might suggest inefficiency in asset utilization or operating losses. However, the company showed significant improvement in December 2021, with an ROA of 8.46%, indicating a positive return on assets and a potential turnaround in profitability.

By December 2022, Viper Energy Ut's ROA surged to 22.43%, demonstrating a substantial increase in profitability relative to its asset base. This significant improvement may reflect strategic decisions, operational efficiencies, or increased revenue generation. However, in December 2023, the ROA dipped to 5.03%, suggesting a decline in profitability or a less efficient use of assets compared to the previous year.

In the most recent period, December 2024, Viper Energy Ut's ROA improved to 7.09%, indicating a moderate increase in profitability relative to its assets. Overall, the fluctuating trend in ROA for Viper Energy Ut suggests varying levels of financial performance and efficiency in utilizing its asset base over the analyzed period. Further examination and comparison with industry peers are recommended to gain a more comprehensive understanding of the company's financial health and operational effectiveness.