Viper Energy Ut (VNOM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,014,290	690,659	2,232,830	1,860,830	2,185,420
ROE		19.73%	21.96%	2.59%	-10.33%	2.12%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $200,088K ÷ $1,014,290K
= 19.73%

The return on equity (ROE) of Viper Energy Ut has fluctuated over the past five years. In 2023, the ROE stands at 19.73%, showing a slight decrease from the previous year's 21.96%. Despite the decline, the ROE remains at a relatively healthy level compared to the lower values seen in 2021 (-10.33%) and 2019 (2.12%). The significant improvement in 2022 from 2021 indicates a positive trend in the company's profitability and efficiency in generating returns for its equity shareholders. It is essential for investors to monitor this ratio over time to assess the company's ability to utilize its equity effectively in generating profits.