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.
Peer comparison
Sep 30, 2024