Viper Energy Ut (VNOM)

Financial leverage ratio

		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	Dec 31, 2019
Total assets	US$ in thousands	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	2,785,630
Total stockholders’ equity	US$ in thousands	1,400,960	1,089,800	1,079,540	1,014,290	2,418,580	2,286,170	2,292,430	690,659	2,290,910	2,270,760	2,242,980	2,232,830	1,855,750	1,847,020	1,850,040	1,860,830	1,953,140	1,941,480	1,990,170	2,185,420
Financial leverage ratio		3.00	3.58	3.72	3.92	1.30	1.30	1.32	4.23	1.30	1.31	1.34	1.36	1.34	1.33	1.32	1.32	1.33	1.35	1.35	1.27

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,206,010K ÷ $1,400,960K
= 3.00

The financial leverage ratio of Viper Energy Ut has fluctuated over the periods provided, ranging from 1.27 to 4.23. A high financial leverage ratio indicates that a company relies more on debt financing, which can amplify returns but also increases financial risk. A low ratio suggests the company is less reliant on debt and may have a stronger equity position.

In this case, Viper Energy Ut's financial leverage ratio has shown significant variability, with some periods showing higher levels of leverage (e.g., 4.23) and others relatively lower (e.g., around 1.30). Sudden spikes or drops in the ratio could suggest major changes in the company's capital structure or debt levels. It would be important to investigate the reasons behind these fluctuations to better understand the company's overall financial health and risk profile.