Viper Energy Ut (VNOM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios provided for Viper Energy Ut, we can observe the following trends:
1. Debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently been reported as 0.00 over the analyzed periods. This indicates that the company has not reported any debt in relation to its assets, capital, or equity during these periods.
2. The financial leverage ratio, on the other hand, has shown significant fluctuations over time. The ratio has ranged from a low of 1.27 to a high of 4.23, indicating varying levels of financial leverage and the use of debt in the company's capital structure. A higher financial leverage ratio suggests a higher proportion of debt financing relative to equity.
Overall, the data suggests that Viper Energy Ut has maintained a debt-free status in terms of traditional solvency ratios such as debt-to-assets, debt-to-capital, and debt-to-equity. However, the fluctuating financial leverage ratio indicates that the company has utilized debt to a varying extent in its capital structure over the analyzed periods, potentially impacting its financial risk and leverage position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.89 | 10.17 | 10.83 | 12.68 | 14.99 | 13.51 | 15.92 | 16.84 | 16.18 | 15.05 | 12.76 | 10.62 | 6.40 | 5.94 | 4.13 | 5.37 | 68.43 | 91.35 | 148.78 | 197.89 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates the company is more capable of servicing its debt obligations.
Analyzing Viper Energy Ut's interest coverage ratios over the past few quarters, we observe fluctuations in the ratio. The interest coverage ratio has seen a generally increasing trend from 4.13 in March 2021 to 16.18 in September 2022. This positive trend indicates improving financial health and the company's ability to comfortably cover its interest expenses.
However, there was a significant increase in the interest coverage ratio to 68.43 and 91.35 in the September and June 2020 quarters, respectively. This abrupt surge could result from various factors such as increased operating earnings or decreased interest expenses during those periods.
The most recent interest coverage ratio of 7.89 as of September 2024, while lower than the previous quarters, still indicates that Viper Energy Ut is generating enough operating income to cover its interest expenses with a reasonable margin of safety. It is important for stakeholders to monitor future trends in the interest coverage ratio to ensure the company's continued ability to meet its debt obligations.