Viper Energy Ut (VNOM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.92 | 4.23 | 1.36 | 1.32 | 1.27 |
The solvency ratios of Viper Energy Ut over the past five years indicate a consistent and strong financial position in terms of debt management and leverage. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, suggesting that the company has had no debt in relation to its assets or capital structure during this period.
The financial leverage ratio, on the other hand, has shown some fluctuations, ranging from 1.27 in 2019 to 4.23 in 2022. The ratio peaked in 2022 at 4.23 but decreased to 3.92 in 2023. Despite these fluctuations, the financial leverage ratio has generally been at manageable levels, indicating that the company has not been overly reliant on debt to finance its operations.
Overall, Viper Energy Ut's solvency ratios reflect a conservative approach to debt management and a stable financial position over the past five years, with no significant debt burden relative to its assets, capital, or equity.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.03 | 16.84 | 10.62 | 1.60 | 197.89 |
Interest coverage is a financial ratio that measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations.
Looking at the trend of Viper Energy Ut's interest coverage ratio over the past five years, we can see fluctuations in the company's ability to cover its interest expenses. In 2019, the interest coverage ratio was extremely high at 197.89, suggesting a very strong ability to pay off its interest obligations. However, in 2020, the ratio decreased significantly to 1.60, indicating a steep decline in the company's ability to cover its interest expenses with operating income.
The interest coverage ratio rebounded in 2021 to 10.62, showcasing an improvement in the company's ability to pay its interest obligations. This improvement continued in 2022 with a ratio of 16.84, indicating a solid increase in the company's ability to cover its interest expenses.
In 2023, Viper Energy Ut's interest coverage ratio decreased to 6.03, indicating a decline compared to the previous year. While the ratio is still above 1, indicating that the company is generating sufficient operating income to cover its interest expenses, investors may want to monitor this metric closely to ensure the company's ability to meet its debt obligations in the future.
Overall, the fluctuating trend of Viper Energy Ut's interest coverage ratio over the past five years suggests variability in the company's financial health and ability to manage its debt obligations. Investors should consider this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and risk profile.