Return on Assets (ROA)
since 2012
Calculation
Diamondback Energy Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Diamondback Energy, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 9.53% | = | 100 | × | 2,182) | ÷ | 22,898) |
| Dec 31, 2020 | -25.64% | = | 100 | × | (4,517) | ÷ | 17,619) |
| Dec 31, 2019 | 1.02% | = | 100 | × | 240) | ÷ | 23,531) |
| Dec 31, 2018 | 3.92% | = | 100 | × | 846) | ÷ | 21,596) |
| Dec 31, 2017 | 6.21% | = | 100 | × | 482) | ÷ | 7,771) |
| Dec 31, 2016 | -3.08% | = | 100 | × | (165) | ÷ | 5,350) |
| Dec 31, 2015 | -19.96% | = | 100 | × | (551) | ÷ | 2,758) |
| Dec 31, 2014 | 6.26% | = | 100 | × | 194) | ÷ | 3,095) |
| Dec 31, 2013 | 3.59% | = | 100 | × | 55) | ÷ | 1,522) |
| Dec 31, 2012 | -6.02% | = | 100 | × | (37) | ÷ | 607) |
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 financial performance between 2012 and 2021 is characterized by extreme volatility in net income and a massive expansion of the total asset base. The Return on Assets (ROA) fluctuated significantly, reflecting a high degree of sensitivity to external market shocks and internal structural changes.
- Asset Base Expansion
- A substantial upward trend in total assets is observed, growing from 607 million US dollars in 2012 to 22.898 billion US dollars by 2021. A particularly aggressive increase occurred between 2017 and 2018, where assets rose from 7.771 billion US dollars to 21.596 billion US dollars, indicating a period of significant capital investment or acquisition activity.
- ROA Volatility and Profitability Cycles
- The ROA exhibited sharp fluctuations, with three distinct periods of negative returns. The most severe contractions occurred in 2015 (-19.96%) and 2020 (-25.64%), coinciding with net losses of 551 million US dollars and 4.517 billion US dollars, respectively. These troughs were followed by recovery phases, most notably in 2021, when the ROA reached a period high of 9.53%.
- Correlation Between Asset Growth and Efficiency
- The data reveals a disconnect between asset accumulation and immediate efficiency gains. From 2017 to 2019, while total assets increased from 7.771 billion US dollars to 23.531 billion US dollars, the ROA steadily declined from 6.21% to 1.02%. This suggests that the rapid expansion of the asset base initially diluted the return efficiency before the significant profitability rebound observed in 2021.
- Net Income Instability
- Net income demonstrated extreme variance, shifting from a net loss of 4.517 billion US dollars in 2020 to a net profit of 2.182 billion US dollars in 2021. This volatility underscores a high-risk profile where earnings are susceptible to large swings, directly impacting the stability of the ROA.
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Comparison to Competitors
Diamondback Energy Inc., ROA, long-term trends, comparison to competitors
| Diamondback Energy Inc. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2021 | 9.53% | 6.52% | 8.91% | 6.80% |
| Dec 31, 2020 | -25.64% | -2.31% | -4.31% | -6.74% |
| Dec 31, 2019 | 1.02% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | 3.92% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | 6.21% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | -3.08% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | -19.96% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 6.26% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 3.59% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | -6.02% | 11.24% | 7.19% | 13.45% |
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., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Diamondback Energy Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2021 | 9.53% | 6.99% |
| Dec 31, 2020 | -25.64% | -4.83% |
| Dec 31, 2019 | 1.02% | 3.65% |
| Dec 31, 2018 | 3.92% | 6.26% |
| Dec 31, 2017 | 6.21% | 4.15% |
| Dec 31, 2016 | -3.08% | 0.55% |
| Dec 31, 2015 | -19.96% | 2.33% |
| Dec 31, 2014 | 6.26% | 8.01% |
| Dec 31, 2013 | 3.59% | 8.79% |
| Dec 31, 2012 | -6.02% | 11.62% |
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., ROA, long-term trends, comparison to industry (energy)
| Diamondback Energy Inc. | Energy | |
|---|---|---|
| Dec 31, 2021 | 9.53% | 6.84% |
| Dec 31, 2020 | -25.64% | -6.08% |
| Dec 31, 2019 | 1.02% | 1.97% |
| Dec 31, 2018 | 3.92% | 5.95% |
| Dec 31, 2017 | 6.21% | 3.55% |
| Dec 31, 2016 | -3.08% | 0.27% |
| Dec 31, 2015 | -19.96% | 2.39% |
| Dec 31, 2014 | 6.26% | 8.02% |
| Dec 31, 2013 | 3.59% | 8.90% |
| Dec 31, 2012 | -6.02% | 11.40% |
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).