Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Diamondback Energy Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.01 | 0.49 | 0.69 | 0.91 | 0.62 | |
| Quick ratio | 0.93 | 0.36 | 0.59 | 0.59 | 0.60 | |
| Cash ratio | 0.47 | 0.09 | 0.10 | 0.21 | 0.19 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Diamondback Energy Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Diamondback Energy Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Diamondback Energy Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Current Ratio
Diamondback Energy Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 1,446) | 602) | 869) | 925) | 359) | |
| Current liabilities | 1,438) | 1,236) | 1,263) | 1,020) | 577) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.01 | 0.49 | 0.69 | 0.91 | 0.62 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.26 | 1.18 | 1.07 | — | — | |
| ConocoPhillips | 1.34 | 2.25 | 2.40 | — | — | |
| Exxon Mobil Corp. | 1.04 | 0.80 | 0.78 | — | — | |
| Marathon Petroleum Corp. | 1.70 | 1.81 | 1.25 | — | — | |
| Occidental Petroleum Corp. | 1.23 | 1.07 | 1.25 | — | — | |
| Valero Energy Corp. | 1.26 | 1.71 | 1.44 | — | — | |
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.23 | 1.16 | 1.08 | — | — | |
| Current Ratio, Industry | ||||||
| Energy | 1.23 | 1.17 | 1.09 | — | — | |
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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,446 ÷ 1,438 = 1.01
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Diamondback Energy Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Quick Ratio
Diamondback Energy Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 654) | 104) | 123) | 215) | 112) | |
| Restricted cash | 18) | 4) | 5) | —) | —) | |
| Accounts receivable, joint interest and other, net | 72) | 56) | 186) | 96) | 73) | |
| Accounts receivable, oil and natural gas sales, net | 598) | 281) | 429) | 297) | 159) | |
| Total quick assets | 1,342) | 445) | 743) | 607) | 344) | |
| Current liabilities | 1,438) | 1,236) | 1,263) | 1,020) | 577) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.93 | 0.36 | 0.59 | 0.59 | 0.60 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.90 | 0.77 | 0.72 | — | — | |
| ConocoPhillips | 1.10 | 1.98 | 1.93 | — | — | |
| Exxon Mobil Corp. | 0.69 | 0.44 | 0.47 | — | — | |
| Marathon Petroleum Corp. | 1.22 | 0.39 | 0.58 | — | — | |
| Occidental Petroleum Corp. | 0.84 | 0.50 | 0.63 | — | — | |
| Valero Energy Corp. | 0.86 | 1.01 | 0.88 | — | — | |
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.87 | 0.62 | 0.66 | — | — | |
| Quick Ratio, Industry | ||||||
| Energy | 0.86 | 0.63 | 0.67 | — | — | |
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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,342 ÷ 1,438 = 0.93
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Diamondback Energy Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Cash Ratio
Diamondback Energy Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 654) | 104) | 123) | 215) | 112) | |
| Restricted cash | 18) | 4) | 5) | —) | —) | |
| Total cash assets | 672) | 108) | 128) | 215) | 112) | |
| Current liabilities | 1,438) | 1,236) | 1,263) | 1,020) | 577) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.47 | 0.09 | 0.10 | 0.21 | 0.19 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.21 | 0.25 | 0.22 | — | — | |
| ConocoPhillips | 0.55 | 1.46 | 1.45 | — | — | |
| Exxon Mobil Corp. | 0.12 | 0.08 | 0.05 | — | — | |
| Marathon Petroleum Corp. | 0.61 | 0.03 | 0.09 | — | — | |
| Occidental Petroleum Corp. | 0.33 | 0.24 | 0.20 | — | — | |
| Valero Energy Corp. | 0.24 | 0.36 | 0.20 | — | — | |
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.27 | 0.20 | 0.18 | — | — | |
| Cash Ratio, Industry | ||||||
| Energy | 0.27 | 0.21 | 0.18 | — | — | |
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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 672 ÷ 1,438 = 0.47
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Diamondback Energy Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |