Viper Energy Ut (VNOM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,687,000 | 1,014,290 | 690,659 | 814,821 | 635,255 |
| ROE | 21.29% | 19.73% | 94.84% | 31.50% | -30.45% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $359,245K ÷ $1,687,000K
= 21.29%
The return on equity (ROE) of Viper Energy Ut has exhibited significant fluctuations over the past five years. In December 2020, the company experienced a negative ROE of -30.45%, indicating that its net income was insufficient to generate a positive return for its shareholders. However, this trend reversed dramatically in the subsequent years, with ROE soaring to 31.50% in December 2021, 94.84% in December 2022, and then declining to 19.73% in December 2023. The most recent data point for December 31, 2024, shows a moderate increase in ROE to 21.29%.
The substantial increase in ROE from negative territory to double-digit positive figures suggests an improvement in the company's profitability and efficiency in utilizing shareholders' equity to generate returns. However, the fluctuating nature of ROE over the years indicates potential volatility in Viper Energy Ut's financial performance and underscores the importance of monitoring the company's profitability trends closely to assess its long-term sustainability and value creation for shareholders.
Peer comparison
Dec 31, 2024