Viper Energy Ut (VNOM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	566,058	673,284	636,825	620,219	636,200	566,786	644,133	680,482	647,706	566,604	457,021	361,572	206,637	145,661	70,897	52,914	139,044	154,297	198,773	193,540
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,400,960	1,089,800	1,079,540	1,014,290	2,418,580	2,286,170	2,292,430	690,659	2,290,910	2,270,760	2,242,980	2,232,830	1,855,750	1,847,020	1,850,040	1,860,830	1,953,140	1,941,480	1,990,170	2,185,420
Return on total capital		40.41%	61.78%	58.99%	61.15%	26.30%	24.79%	28.10%	98.53%	28.27%	24.95%	20.38%	16.19%	11.13%	7.89%	3.83%	2.84%	7.12%	7.95%	9.99%	8.86%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $566,058K ÷ ($—K + $1,400,960K)
= 40.41%

The return on total capital for Viper Energy Ut has shown fluctuations over the periods analyzed. The ratio has generally been positive, indicating the company's efficiency in generating returns from its total invested capital.

From December 2022 to June 2024, the return on total capital experienced an upward trend, peaking at 61.78% in June 2024. This suggests that the company was able to generate substantial returns relative to its total capital during this period.

However, it is important to note that in the past, the return on total capital has shown variability, with lower values seen in March 2021 to March 2023. This could indicate challenges or changes in the company's profitability and capital utilization efficiency during those periods.

Overall, a return on total capital above 20% is generally considered favorable as it indicates the company is efficiently utilizing its capital to generate returns. Investors and stakeholders may consider the trend and magnitude of this ratio when evaluating Viper Energy Ut's financial performance and efficiency in capital allocation.