Viper Energy Ut (VNOM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,014,290 | 690,659 | 2,232,830 | 1,860,830 | 2,185,420 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,014,290K)
= 0.00
Based on the data provided for Viper Energy Ut over the past five years, the debt-to-capital ratio has consistently been at 0.00, indicating that the company has not utilized any debt to finance its operations or growth during this period. This suggests that Viper Energy Ut has been primarily relying on equity financing, which can be viewed positively as it signifies lower financial risk and less financial leverage. However, it is important to note that excessively low debt levels may also imply missed opportunities for leveraging debt to potentially enhance returns for shareholders. Overall, maintaining a consistent debt-to-capital ratio of 0.00 may reflect a deliberate financial strategy to operate with minimal debt exposure.
Peer comparison
Dec 31, 2023