Viper Energy Ut (VNOM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.00 | 3.92 | 4.23 | 3.72 | 3.87 |
Based on the provided data for Viper Energy Ut, the solvency ratios reflect a consistently low level of leverage and debt relative to assets, capital, and equity over the years.
The Debt-to-assets ratio indicates that the company has not used debt significantly to finance its assets, with a ratio of 0.00 for each year from 2020 to 2024. This suggests that Viper Energy Ut is not highly reliant on debt to fund its operations and investments, which can be seen as a positive indicator of financial health and stability.
Similarly, the Debt-to-capital and Debt-to-equity ratios also stand at 0.00 for the same period, reinforcing the company's minimal utilization of debt as a source of funding in relation to its capital and equity base. This indicates that Viper Energy Ut has a strong financial position and does not face significant risk related to excessive debt levels.
Furthermore, the Financial leverage ratio provides additional insight into the overall leverage of the company, with decreasing values observed from 3.87 in 2020 to 3.00 in 2024. This downward trend suggests that Viper Energy Ut has been effectively managing its debt levels relative to its assets and equity, resulting in improved financial leverage over the years.
In conclusion, the solvency ratios of Viper Energy Ut indicate a conservative approach to debt management and a solid financial foundation, with low levels of debt relative to assets, capital, and equity, which bodes well for the company's financial stability and resilience.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.82 | 12.19 | 0.02 | 8.58 | -0.54 |
The interest coverage ratio for Viper Energy Ut has fluctuated over the last five years.
As of December 31, 2020, the interest coverage ratio was negative at -0.54, indicating that the company's earnings were not sufficient to cover its interest expenses. However, by December 31, 2021, the ratio improved significantly to 8.58, showing that the company's earnings could cover its interest payments over eight times.
The interest coverage ratio dropped sharply to 0.02 by December 31, 2022, signaling a significant decrease in the company's ability to cover its interest expenses with its earnings. However, the ratio rebounded strongly to 12.19 by December 31, 2023, indicating a robust improvement in the company's ability to cover its interest obligations.
By December 31, 2024, the interest coverage ratio was 7.82, which suggests that the company continued to have a healthy ability to meet its interest payments with its earnings, albeit slightly lower than the ratio in 2023.
Overall, the trend in Viper Energy Ut's interest coverage ratio shows fluctuations over the years, with periods of both strong and weak coverage. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations in the future.