Viper Energy Ut (VNOM)

Return on equity (ROE)

		Dec 31, 2024	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
Net income (ttm)	US$ in thousands	359,245	206,150	235,832	209,481	200,088	288,357	288,925	292,284	386,358	280,582	218,185	188,883	57,822	-9,262	-26,796	-53,155	-192,304	-162,394	-153,711	-129,715
Total stockholders’ equity	US$ in thousands	1,687,000	1,400,960	1,089,800	1,079,540	1,014,290	714,074	666,902	667,695	690,659	723,923	736	770,362	814,821	582,697	596,527	612,967	635,255	727,509	730,078	758,382
ROE		21.29%	14.71%	21.64%	19.40%	19.73%	40.38%	43.32%	43.78%	55.94%	38.76%	29,644.70%	24.52%	7.10%	-1.59%	-4.49%	-8.67%	-30.27%	-22.32%	-21.05%	-17.10%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $359,245K ÷ $1,687,000K
= 21.29%

Viper Energy Ut's return on equity (ROE) experienced significant fluctuations over the reporting periods in the provided dataset.

The company had negative ROE figures from March 31, 2020, to March 31, 2022, indicating that the company was not generating sufficient profits relative to its shareholder's equity during those periods. This could be a concerning sign for investors as it reflects operational inefficiencies or poor financial performance that impacted the company's ability to generate returns for its shareholders.

However, starting from June 30, 2022, Viper Energy Ut's ROE spiked dramatically to 29,644.70%, indicating an extraordinary increase in profitability relative to its equity base. Such an exceptionally high ROE figure is unusual and may be due to one-time gains, accounting anomalies, or extreme fluctuations in the financial metrics used to calculate ROE.

Subsequently, the ROE figures remained relatively high, albeit showing some fluctuations, indicating improved profitability and efficiency in utilizing shareholder's equity to generate returns. The ROE figures from December 31, 2022, to December 31, 2024, ranged from 14.71% to 21.29%, signaling a more stable performance compared to the earlier periods.

Overall, while the recent positive ROE figures suggest that Viper Energy Ut has improved its profitability and efficiency in utilizing shareholder funds to generate returns, investors should closely monitor future financial performance to ensure sustainability and consistency in the company's ability to generate returns on equity.