Viper Energy Ut (VNOM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,069,040 | 3,974,090 | 2,920,370 | 3,034,020 | 2,461,380 |
| Total stockholders’ equity | US$ in thousands | 1,687,000 | 1,014,290 | 690,659 | 814,821 | 635,255 |
| Financial leverage ratio | 3.00 | 3.92 | 4.23 | 3.72 | 3.87 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,069,040K ÷ $1,687,000K
= 3.00
The financial leverage ratio of Viper Energy Ut has shown fluctuations over the years. As of December 31, 2020, the ratio was 3.87, indicating that the company relied heavily on debt to finance its operations. However, by December 31, 2021, the ratio decreased to 3.72, suggesting a slight reduction in the company's reliance on debt.
Subsequently, the financial leverage ratio increased significantly to 4.23 by December 31, 2022, implying a higher level of debt relative to equity in the company's capital structure. This increase may raise concerns about the company's ability to meet its debt obligations and financial stability.
The ratio decreased to 3.92 by December 31, 2023, suggesting some improvement in the company's leverage position. Finally, by December 31, 2024, the ratio decreased further to 3.00, which could signal a healthier financial position with reduced dependence on debt financing.
Overall, Viper Energy Ut's financial leverage ratio has experienced fluctuations, indicating changes in the company's capital structure and risk profile over the years. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2024