Viper Energy Ut (VNOM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,069,040 | 4,206,010 | 3,900,420 | 4,012,570 | 3,974,090 | 3,143,370 | 2,967,040 | 3,019,740 | 2,920,370 | 2,985,760 | 2,971,980 | 3,001,080 | 3,034,020 | 2,482,470 | 2,450,160 | 2,441,800 | 2,461,380 | 2,600,700 | 2,624,270 | 2,679,480 |
| Total stockholders’ equity | US$ in thousands | 1,687,000 | 1,400,960 | 1,089,800 | 1,079,540 | 1,014,290 | 714,074 | 666,902 | 667,695 | 690,659 | 723,923 | 736 | 770,362 | 814,821 | 582,697 | 596,527 | 612,967 | 635,255 | 727,509 | 730,078 | 758,382 |
| Financial leverage ratio | 3.00 | 3.00 | 3.58 | 3.72 | 3.92 | 4.40 | 4.45 | 4.52 | 4.23 | 4.12 | 4,038.02 | 3.90 | 3.72 | 4.26 | 4.11 | 3.98 | 3.87 | 3.57 | 3.59 | 3.53 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,069,040K ÷ $1,687,000K
= 3.00
The financial leverage ratio for Viper Energy Ut has been fluctuating over the timeframe provided. Starting at 3.53 on March 31, 2020, the ratio increased gradually, reaching its peak at 4.52 on March 31, 2023. This indicates that the company has relied more on debt financing relative to equity during this period.
However, there was a slight decrease in the ratio to 3.72 by December 31, 2023, followed by a further decline to 3.58 on June 30, 2024, and ending at 3.00 on September 30, 2024. This downward trend suggests a reduction in the company's financial leverage and potentially a shift towards a more conservative capital structure with a lower level of debt to support its operations.
It is important to note that a high financial leverage ratio can indicate increased financial risk and vulnerability to economic downturns, while a low ratio may suggest greater stability but could limit growth opportunities. Therefore, Viper Energy Ut's management should carefully monitor and manage its leverage ratio to ensure a balance between risk and growth potential.
Peer comparison
Dec 31, 2024