Viper Energy Ut (VNOM)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	206,150	235,832	209,481	200,088	164,822	165,563	169,035	151,673	169,432	106,924	77,564	57,939	-9,145	-26,741	-53,155	-192,304	-162,394	-153,684	-129,667	46,281
Total assets	US$ in thousands	4,206,010	3,900,420	4,012,570	3,974,090	3,143,370	2,967,040	3,019,740	2,920,370	2,985,760	2,971,980	3,001,080	3,034,020	2,482,470	2,450,160	2,441,800	2,461,380	2,600,700	2,624,270	2,679,480	2,785,630
ROA		4.90%	6.05%	5.22%	5.03%	5.24%	5.58%	5.60%	5.19%	5.67%	3.60%	2.58%	1.91%	-0.37%	-1.09%	-2.18%	-7.81%	-6.24%	-5.86%	-4.84%	1.66%

September 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $206,150K ÷ $4,206,010K
= 4.90%

The Return on Assets (ROA) of Viper Energy Ut has shown fluctuations over the past years, indicating varying levels of efficiency in generating profits from its assets. In the most recent quarter, for September 30, 2024, the ROA stood at 4.90%, which is lower compared to the previous quarter's figure of 6.05%. Despite the decrease, the company has maintained a positive ROA, reflecting a positive trend in utilizing its assets to generate earnings.

Looking back further, there has been a general upward trend in ROA from the end of 2020 through mid-2023, with some minor fluctuations. The highest ROA was observed in the quarter ending June 30, 2023, at 5.58%. However, this trend reversed in the subsequent quarters with a decline in ROA. Notably, in the quarters ending December 2020 and March 2021, the company experienced negative ROA figures, indicating difficulties in generating profits from its assets during those periods.

Overall, the analysis suggests that Viper Energy Ut has been able to maintain positive returns on its assets in recent periods, albeit with fluctuations. It is essential for the company to continue monitoring and improving its asset utilization efficiency to sustain profitability and enhance shareholder value.