Viper Energy Ut (VNOM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,974,090 | 2,920,370 | 3,034,020 | 2,461,380 | 2,785,630 |
| Total stockholders’ equity | US$ in thousands | 1,014,290 | 690,659 | 2,232,830 | 1,860,830 | 2,185,420 |
| Financial leverage ratio | 3.92 | 4.23 | 1.36 | 1.32 | 1.27 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,974,090K ÷ $1,014,290K
= 3.92
The financial leverage ratio of Viper Energy Ut has been fluctuating over the past five years. The ratio increased from 1.27 in 2019 to 4.23 in 2022, indicating a significant rise in financial leverage during this period. However, in 2023, the ratio slightly decreased to 3.92. The highest level of financial leverage was observed in 2022, suggesting a higher level of debt compared to equity in the company's capital structure. It is important to note that a high financial leverage ratio can amplify both returns and risks for the company. The company may be carrying a higher debt burden, which could impact its financial stability and ability to meet its financial obligations. Management should carefully monitor and manage the financial leverage ratio to ensure the optimal capital structure for the company's operations and growth.
Peer comparison
Dec 31, 2023