Current Ratio
since 2012
Calculation
Diamondback Energy Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.01 | = | 1,446) | ÷ | 1,438) |
| Dec 31, 2020 | 0.49 | = | 602) | ÷ | 1,236) |
| Dec 31, 2019 | 0.69 | = | 869) | ÷ | 1,263) |
| Dec 31, 2018 | 0.91 | = | 925) | ÷ | 1,020) |
| Dec 31, 2017 | 0.62 | = | 359) | ÷ | 577) |
| Dec 31, 2016 | 8.56 | = | 1,792) | ÷ | 209) |
| Dec 31, 2015 | 0.77 | = | 109) | ÷ | 141) |
| Dec 31, 2014 | 0.94 | = | 252) | ÷ | 267) |
| Dec 31, 2013 | 0.51 | = | 62) | ÷ | 121) |
| Dec 31, 2012 | 0.63 | = | 50) | ÷ | 79) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The short-term liquidity position from 2012 to 2021 is characterized by significant volatility and a recurring tendency to operate with a current ratio below 1.0. For the majority of the decade, current liabilities exceeded current assets, indicating a persistent reliance on external financing or operational cash flow to meet short-term obligations.
- Liquidity Volatility and Anomalies
- A substantial outlier is observed in 2016, where the current ratio spiked to 8.56. This was driven by a surge in current assets to 1,792 million US$, while current liabilities remained relatively low at 209 million US$. This peak represents a temporary and extreme deviation from the general trend, as the ratio sharply reverted to 0.62 by 2017.
- Balance Sheet Expansion
- A long-term growth trend is evident in the absolute scale of both current assets and current liabilities. Current liabilities grew from 79 million US$ in 2012 to 1,438 million US$ in 2021. Similarly, current assets increased from 50 million US$ to 1,446 million US$ over the same period, reflecting a significant expansion of the company's operating scale.
- Recent Liquidity Trends
- The period between 2019 and 2020 saw a decline in liquidity, with the current ratio reaching a decade-low of 0.49 in 2020. However, a strong recovery occurred in 2021, with the ratio rising to 1.01. This transition marks the first time since 2016 that current assets have fully covered current liabilities, signaling an improvement in the short-term solvency position.
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Comparison to Competitors
Diamondback Energy Inc., current ratio, long-term trends, comparison to competitors
| Diamondback Energy Inc. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2021 | 1.01 | 1.26 | 1.34 | 1.04 |
| Dec 31, 2020 | 0.49 | 1.18 | 2.25 | 0.80 |
| Dec 31, 2019 | 0.69 | 1.07 | 2.40 | 0.78 |
| Dec 31, 2018 | 0.91 | 1.25 | 1.79 | 0.84 |
| Dec 31, 2017 | 0.62 | 1.03 | 1.76 | 0.82 |
| Dec 31, 2016 | 8.56 | 0.93 | 1.25 | 0.87 |
| Dec 31, 2015 | 0.77 | 1.34 | 0.95 | 0.79 |
| Dec 31, 2014 | 0.94 | 1.32 | 1.31 | 0.82 |
| Dec 31, 2013 | 0.51 | 1.52 | 1.26 | 0.83 |
| Dec 31, 2012 | 0.63 | 1.63 | 1.38 | 1.01 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Diamondback Energy Inc., current ratio, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Diamondback Energy Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2021 | 1.01 | 1.14 |
| Dec 31, 2020 | 0.49 | 0.99 |
| Dec 31, 2019 | 0.69 | 0.98 |
| Dec 31, 2018 | 0.91 | 1.04 |
| Dec 31, 2017 | 0.62 | 0.97 |
| Dec 31, 2016 | 8.56 | 0.92 |
| Dec 31, 2015 | 0.77 | 0.97 |
| Dec 31, 2014 | 0.94 | 1.02 |
| Dec 31, 2013 | 0.51 | 1.07 |
| Dec 31, 2012 | 0.63 | 1.25 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Energy)
Diamondback Energy Inc., current ratio, long-term trends, comparison to industry (energy)
| Diamondback Energy Inc. | Energy | |
|---|---|---|
| Dec 31, 2021 | 1.01 | 1.15 |
| Dec 31, 2020 | 0.49 | 1.02 |
| Dec 31, 2019 | 0.69 | 1.00 |
| Dec 31, 2018 | 0.91 | 1.06 |
| Dec 31, 2017 | 0.62 | 1.00 |
| Dec 31, 2016 | 8.56 | 1.02 |
| Dec 31, 2015 | 0.77 | 1.09 |
| Dec 31, 2014 | 0.94 | 1.10 |
| Dec 31, 2013 | 0.51 | 1.16 |
| Dec 31, 2012 | 0.63 | 1.31 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).